TORONTO, July 17, 2018 (GLOBE NEWSWIRE) -- Urbanfund Corp. (TSX-V:UFC) (“Urbanfund” or the “Company”) confirmed today that it has closed the sale of 48 Weber Street, 61 Roy Street and 65 Roy Street, Kitchener, Ontario (the “Properties”) for a total sales price of $7,300,000.
In July 2015, Urbanfund commenced a real estate project through Weber Investments Limited Partnership (the “Limited Partnership”) to purchase and renovate properties in Kitchener, Ontario. As of the date of closing, Urbanfund’s capital contributions were approximately $2,250,000, representing approximately 90% of the total equity in the Limited Partnership.
Mitchell Cohen, President and Chief Executive Officer of Urbanfund, said, “We are very pleased to report progress on the execution of our redevelopment strategy in such a short time. This transaction reinforces the quality and value of our real estate projects.” Urbanfund anticipates a return of its initial investment plus an annualized internal rate of return of 6%, as defined by the terms and conditions of the Limited Partnership agreement. The return of investment and annualized internal rate of return are determined at the discretion of the General Partner of the Limited Partnership, and after any customary price adjustments and repayment of the mortgage outstanding of approximately $4,500,000. The return of Urbanfund’s investment will be used to fund future acquisitions in real estate or other real estate related projects.
ABOUT URBANFUND
Urbanfund is a Toronto-based real estate development and operating company listed on the TSX Venture Exchange (“TSX-V”) under the symbol UFC. The Company is a reporting issuer in Alberta, British Columbia and Ontario.
The Company’s focus is to identify, evaluate and invest in real estate or real estate related projects. The Company’s assets are located in Toronto, Belleville, Kitchener, London, and Brampton Ontario and in Montreal and Quebec City, Quebec.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains certain “forward-looking statements”, including statements about Urbanfund’s anticipated timing and quantum of receipt of distributions from the Project and the Company’s future investment objectives. Wherever possible, the words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “instead”, “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. The timing and quantum of the anticipated return on the investment in the Project is subject to a number of risks and uncertainties related to the Project that are not within the Company’s control, which risks and uncertainties are customary for development projects of the scale and magnitude of the Project.
For a 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 30, 2018.
For further information, please contact:
Mitchell Cohen
Chief Executive Officer and President
Urbanfund Corp.
416-703-1877 ext. 1025
Neither 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 accuracy of this release.