IRVINE, Calif., July 5, 2011 (GLOBE NEWSWIRE) -- Sharewell Capital Group, Inc. (Pink Sheets:SHCG) ("Sharewell") announced today it has signed an exclusive letter-of-intent to acquire two large real estate assets located in California, subject to recapitalization and approval from existing lenders at the time of closing. The properties are currently tied up in Chapter 11 bankruptcy, which Sharewell believes will enable the acquisition of these combined assets at a significant discount to current intrinsic values, largely through the issuance of shares of common stock of Sharewell.
The first property consists of just over 27,000 contiguous acres of multi-use agricultural land in Central California. This is particularly appealing because of Sharewell's belief in the long-term investment thesis for agriculture, driven largely by consistent demand from a rising global population, coupled with the trend of improving diets, both domestically and abroad.
The second property consists of just over 500 acres of commercial, single family residential and multi-family development land in San Diego's North County region. Sharewell contemplates engaging with an experienced development partner to help maximize the long-term potential of this premium property in the midst of continued fragility in the housing and mortgage markets, while concurrently minimizing capital expenditures in the near-term.
"This transaction represents an opportunity for us to achieve some immediate investment scale for our shareholders, leveraging our public company structure to effectively acquire long-duration assets and permanent capital at attractive valuations," says Steve Robertson, Chief Executive Officer of Sharewell. "We have high conviction about the persistent capital commitment to food-based commodities, and firmly believe that agricultural property will continue to appreciate in the years ahead, while concurrently offering a compelling source of yield and recurring income."
ABOUT SHAREWELL CAPITAL GROUP, INC.
Sharewell Capital Group, Inc. is a publicly-traded holding company focused on making strategic acquisitions in undervalued companies and assets with significant growth potential. Sharewell intends to raise and invest significant permanent capital with a "duration agnostic" time horizon in order to maximize shareholder equity, liquidity and transparency. Sharewell is publicly-traded under the symbol SHCG.
The Sharewell Capital Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9426
FORWARD LOOKING STATEMENTS
Certain statements made by Sharewell, which are not historical facts, may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements.