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SG Blocks Inks Licensee for Residential Projects
Brooklyn-based SG Blocks, which designs and fabricates container-based structures, has entered into its first licensing transaction. The unidentified licensee has injected more than $100 million into underserved communities and will operate under the name SG Residential.
Under the agreement, SG Blocks retains its right to construction projects in non-residential verticals. These include food service, military, non-military government, retail, commercial, industrial and disaster relief-related construction.
“This deal significantly reduces project-level financing risk as well as execution risk,” said SG Blocks CEO Paul Galvin. “As importantly, our fixed expenses are reduced dramatically, and we expect with the execution of additional license agreements to reduce them even further.
“Given the real estate experience and financial strength of our licensee, the licensing model increases the likelihood of success of these projects and ultimately reduces not only the amount of expense but also the capital required by the company,” he added.
For comments, questions or concerns, please contact Paul Bubny
- ◦Development
