RICHMOND, BC, July 2, 2012 /CNW/ - Huntingdon Capital Corp.
("Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) announced today that it
has successfully completed the sale of its Ontario retail portfolio.
"This sale marks a significant milestone for Huntingdon. We have exited
from the Ontario retail space at an attractive valuation and are well
positioned to use these sale proceeds to pursue accretive transactions
for shareholders." said Zachary George, CEO and President.
The Ontario retail portfolio comprised of Lincoln Centre in Welland,
Suncoast Mall in Goderich, Portage Place in Peterborough, Crossroads
Centre in London and Speedvale Mall in Guelph.
The gross sales proceeds were $80.0 million and after adjusting for
vendor financing of $23.7 million, mortgage discharges and other
closing adjustments, net sale proceeds were $34.0 million. The terms of
the vendor financing include an $18.7 million promissory note bearing
interest at 12.0% per annum and a $5.0 million promissory note bearing
interest at 5.5% per annum. Both promissory notes have a term of one
Three of the five properties sold were pledged as collateral for
Huntingdon's secured debentures. As part of this sale, this security
was replaced with four other properties: the Medical Arts office
building in Winnipeg, Manitoba, a retail property in Yellowknife,
Northwest Territories and the industrial properties in Brooks and Grand
Prairie, Alberta. The mortgages on these four properties amounted to
$19.7 million and were discharged as part of the security replacement
The ultimate net proceeds to Huntingdon after closing adjustments and
the debenture security replacement is $20.6 million. Huntingdon
currently holds approximately $24.5 million in cash and has a net debt
to total asset ratio of 46.8%.
Consistent with the previous announcement, management anticipates there
will be no taxes payable arising from this transaction. The proceeds
from the sale will be used for the repayment of mortgage debt, the
return of capital to shareholders and potential acquisitions.
Huntingdon owns, directly or indirectly, 68 income producing office,
industrial and retail properties with a total gross leasable area of
4.5 million square feet.
The Toronto Stock Exchange has not reviewed nor approved the contents of
this press release and does not accept responsibility for the adequacy
or accuracy of this press release.
SOURCE Huntingdon Capital Corp.
For further information:
Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101