HALIFAX, March 14 /CNW/ - Overland Realty Limited (TSX-V - OVL) Overland
Realty Limited ("Overland") recently announced that it has entered into
binding agreements to purchase two real estate portfolios. The Greenarm and
GDPI portfolio acquisitions announced on March 13, 2007, coupled with of the
Kraft Building in Moncton previously announced on February 21, 2007,
encompasses 16 buildings and 566,000 square feet of space (plus a 3.6 acre
land lease) and include the acquisition of Greenarm Management for $1.6
million, the region's largest property management company.
These acquisitions will be financed through the assumption of the
existing first mortgage balances totaling $23.79 million, $5.52 million, and
$1.28 million for the Greenarm, GDPI and Kraft portfolios respectively and an
approximate $20 million bridge debt facility, on terms yet to be finalized.
All remaining funds required for these transactions will be derived from the
proposed vendor-take-back financing, share consideration and existing working
capital of the company.
In conjunction with these acquisitions Overland has engaged Brookfield
Financial Real Estate Group Limited as its financial advisor to arrange the
required debt financing for these transactions.
The Greenarm, GDPI and Kraft acquisitions represent three distinct
transactions. There can be no guarantee that any of the transactions will
close. The acquisitions remain subject to industry standard due diligence
requirements, including receipt of appraisals, environmental and structural
reports, successful negotiation and assumption of existing financing,
successful sourcing of additional financing, regulatory approval, and the
final approval of the Board of Directors of Overland. Overland will issue
further press releases upon completion of due diligence and upon the
finalization of the terms of the debt facility.
All disclosed pricing excludes closing costs and customary adjustments.
No finder's fees are being paid as part of the issuance of shares, or for any
other aspect of the transaction. The TSX Venture Exchange has indicated that
it will likely require Overland to submit a Filing Statement regarding the
Greenarm and GDPI transactions prior to their respective closings.
Overland Realty Limited is a TSX-V listed, growth-orientated real estate
corporation based in Halifax, Nova Scotia. The company is focused on
increasing shareholder value through the acquisition, development, and
management of commercial properties in targeted Canadian markets, starting
within Atlantic Canada. Further information on Overland can be found at
Forward Looking Information
This press release contains forward looking statements. Overland is
subject to significant risks and uncertainties which may cause the actual
results, performance or achievements of Overland to be materially different
from any future results, performance or achievements expressed or implied by
the forward looking statements contained in this release. Such risk factors
include, but are not limited to, risks associated with real property
ownership, availability of cash flow, general uninsured losses, future
property acquisitions, environmental matters, tax related matters, debt
financing, potential conflicts of interest, potential dilution, reliance on
key personnel and the potential any disclosed acquisitions will not close. A
description of these risk factors can be found in Overland's most recent
Management Discussion and Analysis, which can be found at www.sedar.com.
Overland cannot assure investors that actual results will be consistent with
these forward looking statements and Overland assumes no obligation to update
or revise the forward looking statements contained in this release to reflect
actual events or new circumstances.
The Corporation has issued and outstanding 14,290,350 common shares.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Scott McCrea, President & CEO, (902) 474-3000,
firstname.lastname@example.org; www.overlandrealty.ca; Source: Overland Realty