TORONTO, Oct. 10, 2017 (GLOBE NEWSWIRE) -- Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX-V: UFC ) (“Urbanfund” or, the “Company”), announced today that Urbanfund has entered into a letter of intent to form a joint venture, with an arm’s length real estate investment firm, to purchase, renovate, change to condominium title and sell units in, an industrial complex, comprised of one building, located at 4 Alfred Kuehne Blvd. in Brampton, Ontario near the intersection of Steeles Avenue East and Dixie Road.
The complex is comprised of an industrial building, aggregating 46,790 square feet, and is under contract for a purchase price of $4.7 million (subject to customary adjustments). The property has 12 units and is currently 81% occupied.
It is anticipated that the Company will hold a 50% interest as will its joint venture partner, Takol Real Estate Inc. Each party will invest $1.8 million (inclusive of purchase price deposits) with the remainder of the purchase price and funds to renovate the property provided by a financial institution at a rate of 5.50% per annum.
“We are very excited to be working with Takol again,” noted Mitchell Cohen. “The template that we have developed for renovating and selling industrial units primarily to users, is gaining traction in the marketplace. We are pleased to be once again part of this opportunity.”
The existing rent roll allows for the renovation and turnover of units into condominiums while still collecting rental revenue from the tenants whose leases have term left. The purchase, which equates to approximately $100 per square foot provides an anticipated Year 1 NOI of $108,000 prior to any sales or renovation. Closing is scheduled to take place in mid-November 2017 with renovations and sales projected over three years.
ABOUT URBANFUND CORP.
Urbanfund Corp. is a Toronto-based real estate development and operating company. Urbanfund’s focus is to identify, evaluate and invest in real estate or real estate related projects. The Company’s assets are located in Belleville, Brampton, Kitchener, London and Toronto, Ontario, Quebec City and Montreal, Quebec, and Dartmouth, Nova Scotia. The Company’s strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.
ABOUT TAKOL REAL ESTATE INC.
Takol is a Canadian private equity company specializing in commercial real estate investment, development and re-development with national market expertise. The company is currently working on other opportunities in Ottawa, Ontario and Winnipeg, Manitoba.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, which reflect Management's expectations regarding the Company's growth, results of operations, performance and business prospects and opportunities. Statements about the acquisition, renovation, condominium conversion, and sale, of 4 Alfred Kuehne Blvd. in Brampton, Ontario constitute forward-looking statements. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect Management's current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: general economic and market segment conditions, interest rates, costs outside of the Company's control such as Real Estate Taxes and utilities, the ability of tenants to satisfy their contractual rent obligations and any unforeseen repair, maintenance or replacement of the Company's assets. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the "Risks and Uncertainties" section of the Company's most recent Management's Discussion and Analysis.
For further information please contact: Urbanfund Corp. Mitchell Cohen President & CEO
(416) 703-1877x1025
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
