Alico sells 5,187 acres in Lee

FORT MYERS — Private Equity Group LLC has agreed to buy 5,187 acres of undeveloped land from Alico-Agri, a subsidiary of Alico Inc., for $10 million.

The three parcels sold are located in Fort Myers, bounded by Florida Gulf Coast University and Miromar Outlets to the west; Alico Road and the Southwest Florida International Airport to the north; and single-family residences to the east. The closing for the properties is scheduled for Oct. 3.

Alico, a publicly traded land management and agribusiness company based in Fort Myers, says it's selling the land primarily for tax benefits. In a release, it says the income tax basis for the land is $65 million, which allows it to post a tax loss of $55 million from the sale. The company says this will reduce its tax liabilities and offset tax gains from its recent land transactions in Polk County.

“The decision to sell the property was difficult given its proximity to Florida Gulf Coast University and Alico's historical role in the establishment of the university and partnering with FGCU on many projects,” JD Alexander, Alico president and CEO, says in a release. “Alico will derive significant tax benefits from the sale, and the cash flow will provide us the opportunity to potentially reduce or net debt position to approximately $20 million by our fiscal year end.”

Alico (symbol: ALCO, recent price: $31.41) says the transaction was in line with its strategy to sell underproductive assets surplus to its operations. Fort Myers-based Private Equity Group has not disclosed its plans for the land.