TORONTO, ONTARIO--(Marketwired - Aug. 4, 2015) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) ("Urbanfund" or the "Company"), confirmed today that the joint venture with Westdale Construction Co. Limited ("Westdale") has completed the sale of the property known municipally as 2825 and 2835 Rue de la Concord and 2840 Rue Emile Bouchard, in Quebec City, Quebec (the "Property").
The Property is comprised of a twin-tower apartment complex containing a total of 192 residential units located south of the Highway 40 and Highway 73 interchange. In 2013, the Company entered into a joint venture with Westdale and acquired its 10% undivided interest from Westdale's former joint venture partner. Mr. Ronald S. Kimel, the Chairman and a director of Urbanfund, is also a director, officer and shareholder of Westdale, the Company's largest shareholder.
Gross proceeds from the sale totaled $11 million (subject to customary purchase price adjustments for transactions of this nature) prior to the repayment of approximately $4.1 million in mortgage liabilities and related obligations. Urbanfund retains a 10% interest in the proceeds from the sale of the Property, which are anticipated to be used to further the Company's stated business objectives.
Urbanfund 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, London and Toronto, Ontario, Quebec City and Montreal, Quebec. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.
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 Company's proposed use of proceeds from the sale of the Property 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 dated May 29, 2015.
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