CLARKSDALE, Miss., Oct. 17, 2005 (PRIMEZONE) -- Superior Development Group, Inc. (Pink Sheets:SDVG), a Mississippi-based provider of affordable housing, announced today the formation and acquisition of Superior Affordable Housing Corporation, a real estate investment trust formed to acquire, rehabilitate, manage and hold affordable housing properties. Superior Development acquired Superior Affordable Housing Corporation in a cash for stock transaction.
Commenting on the acquisition was Derrick D. Neal, President and CEO of Superior Development, who said, "Superior Affordable Housing Corporation was formed because of the need to insure that properties financed under the Federal Housing Act of 1949 will remain affordable as the property owners attempt to opt out of the federal government's affordable housing programs, which creates an opportunity for us through our wholly owned subsidiary to acquire a substantial portfolio of housing units. These units will provide additional cash flow and development fees for Superior Development Group, Inc. that will be eventually passed on to our shareholders in the form of stock dividends." Mr. Neal further commented that "Superior Affordable Housing Corporation has been initially capitalized by Superior Development, but is expected to acquire its portfolio of affordable housing properties through debt and equity offerings and become a publicly traded Real Estate Investment Trust and with our ownership of all the common shares of Superior Affordable Housing Corporation, the net worth and asset base of Superior Development Group, Inc. will be substantially increased."
About Superior Development Group Inc.
Superior Development Group, Inc. is a publicly traded multi-faceted real estate development, construction-operative builder and sales company. The Company's development efforts are focused in four major areas of the housing market; development of affordable lease to purchase single family residential development, development of affordable multifamily rental housing, acquisition, development of raw land for subdivision development and the acquisition and rehabilitation of existing multi-family and commercial properties. The Company offers a wide variety of creative and effective solutions in the affordable housing market.
Additional information about Superior Development Group, Inc. is available online at www.superiordevelopmentgroup.com
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