ISG Completes Sale of Ingersoll Distribution Facility
TORONTO, Nov. 6, 2012 /CNW/ - ISG Capital Corporation (TSXV: SUS "ISG") announced today that it has closed the previously announced sale of its sole real estate asset, an industrial distribution facility at 311 Ingersoll Road in Ingersoll, Ontario (the "Property").
The sale price of the Property was $10,532,250, which represented a going-in yield on in-place net operating income of approximately 8%. The sale price was then subject to a mortgage interest rate buy-down of $250,000 resulting in a net purchase price of $10,282,250, before closing adjustments.
ISG remains focused on the previously announced plan of arrangement to effectively convert ISG into a new real estate investment trust (REIT) with members of the Firm Capital group of companies ("Firm Capital") providing asset, property and executive management services (the "Plan of Arrangement"). ISG expects the Plan of Arrangement to be completed in fourth quarter of 2012.
The sale of the Property was approved by 100% of the votes cast at an Annual and Special Meeting of Shareholders held on October 29, 2012.
"I am very pleased with the 21% internal rate of return realized on the Property. The sale of the Property is consistent with the plan Firm Capital proposes for the new REIT. I am excited about the go forward strategy with Firm Capital", noted David Ogden, ISG's President and C.E.O.
A third party consultant verified the Corporation's IRR on the Ingersoll Property from the date of acquisition in February of 2009 to the sale on November 6, 2012. The increase in value and operating gains achieved from ISG's energy saving initiatives combined to produce the attractive IRR.
ISG is a publicly-traded commercial real-estate company (www.isgcapital.ca). The company is committed to creating shareholder value by incorporating environmentally and socially responsible approaches in its growth strategy.
This news release contains "forward-looking statements" within the meaning of applicable securities laws, including those relating to the Plan of Arrangement, the anticipated cash redemption amount thereunder, the expected sale of the Ingersoll Property and the proposed listing of FCPT units on the TSXV. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. In particular, there can be no assurance that the parties will proceed with the proposed plan of arrangement and associated transactions, that the ultimate terms of the proposed plan of arrangement and associated transactions will be consistent with those that currently are contemplated, that the required court, shareholder or TSXV approvals will be obtained, that the proposed plan of arrangement and associated transactions will be successfully completed or that the cash redemption amount that Shareholders are ultimately entitled to receive will be consistent with the amount currently expected by ISG. The statements in this news release are made as of the date of this release. Although ISG believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) has approved or disapproved the contents of this press release.
SOURCE: ISG Capital CorporationFor further information:
President and Chief Executive Officer
(416) 203-7538 or (877) 877-0213