CALGARY, Jan. 25 /CNW/ - NewNorth Projects Ltd. (NNP.TSXV) today announced the acquisition, in partnership with Mr. Alain Rossignol, of all the outstanding shares of Chilkat Enterprises Ltd. (a Northwest Territories property development company) ("Chilkat"). Mr. Rossignol is a local, well-established, long term Yellowknife businessman.
With this acquisition comes land and revenue producing commercial assets owned by Chilkat on Old Airport Road in Yellowknife, NT. The site is approximately 4.6 acres in size and currently has five warehouse buildings (a total combined footprint of 29,600 square feet) developed on it. The buildings are fully leased to established tenants including Public Works and Government Services (Canada) which has leased a large portion of the site and is expected to remain a long term tenant.
These assets owned by Chilkat have been appraised at $3,440,000. The acquisition of Chilkat will be financed by re-financing these assets. NewNorth believes that there is room for substantial improvement on the initial capitalization rate of 9.5% and that this acquisition strengthens NewNorth Projects' position in the Northwest Territories.
NewNorth Projects Ltd. is an opportunity-driven integrated land and building development corporation operating in Alberta and the Northwest Territories.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE NewNorth Projects Ltd.
For further information: For further information: Mr. Greg N. Herndier, President and Chief Executive Officer at (403) 531-0280