TORONTO, ONTARIO--(Marketwired - April 23, 2013) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) ("Urbanfund" or, the "Company"), announced today that Urbanfund completed its acquisition of 10% of an 1,870 unit multi-family residential portfolio located in Quebec City and Montreal, Quebec.
The total purchase price for the 10% purchase was $7,197,498 (representing an agreed purchase price of $7,225,000 prior to customary adjustments). The average "going in" capitalization rate of this transaction is estimated at 6.40%. Most of the properties included in the transaction have existing mortgages at competitive market rates. Of the 1,870 units, 312 are located in Montreal with the remainder in Quebec City.
The remaining 90% of the multi-family residential portfolio continues to be owned by Westdale Construction Co. Limited. Urbanfund has entered into a joint venture agreement with Westdale with regard to their respective interests in the property portfolio. Mr. Ronald S. Kimel, the Chairman and a director of Urbanfund, is the principal shareholder of Westdale. Property management will be performed by La Corporation Headway Ltee which is owned 10% by Urbanfund and 90% Westdale.
Satisfaction of the purchase price will be through a combination of $4,000,000 in cash and $3,197,498 vendor take-back mortgage at 4.5%.
Urbanfund Corp. is a Toronto-based real estate development and operating company. Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. The Company's common shares trade under the symbol UFC on the TSX Venture Exchange. 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, London and Toronto, Ontario. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.
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.
President & CEO