Proceeds will be used primarily to fund capital expenditures including restaurant upgrades
TORONTO, Dec. 24 /CNW/ - Priszm Income Fund (TSX: QSR.UN) ("Priszm" or the "Company") today announced that after reviewing the various assets in its portfolio, it has sold its food processing facility located in Toronto for gross proceeds of $11.5 million. The food processing facility, which operates under the brand name Sequel, provides salads to KFC restaurants across Canada and to other third parties.
The proceeds from the sale will be used primarily to fund the capital investment that is required to upgrade 75 of its restaurants pursuant to the renewal of a number of the Company's franchise agreements in 2010. By the end of 2010, Priszm will have more than 150 restaurants with long term franchise agreements in place and 195 restaurants that meet the franchisor's current brand and image standards.
About Priszm Income Fund
Priszm Income Fund (TSX: QSR.UN) holds approximately a 60 per cent interest in Priszm Limited Partnership, which owns and operates more than 400 quick service restaurants in seven provinces across Canada. The KFC, Taco Bell and Pizza Hut restaurants under Priszm serve more than 1 million customers a week and employ approximately 7,400 people. Currently, more than 100 locations are multi-branded, combining two or more of the Fund's restaurant concepts.
To find out more about Priszm Income Fund (TSX: QSR.UN), visit our website at http://www.priszm.com.
Certain information in this document may constitute forward-looking statements within the meaning of securities laws that involve known and unknown risks, uncertainties, future expectations and other factors with respect to industry sector performance, business plans, activities, trends and events anticipated by the Priszm Income Fund (the "Company") and which may cause the Company's future performance and results to be materially different from those implied by the forward-looking information. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or the negative of these terms or other comparable terminology concerning matters that are not historical facts. Forward-looking information is based on certain factors and assumptions regarding, among other things, the number of restaurants, the renewal of the franchise agreement, the industry sector performance, business plans, activities, trends and events anticipated by the Company. Although the Company believes that the assumptions underlying such statements are reasonable, any of the assumptions may prove to be inaccurate and, as a result, the forward-looking information may prove to be incorrect. The forward-looking information, assumptions and statements reflect the views of the Company's management with respect to future events and outcomes as of the date of this document and there should be no expectation that such information will be updated, revised and/or supplemented whether as a result of new information, changing circumstances, future events or other cause. Actual events or outcomes may be materially different and cause the performance of the Company to differ materially from any forward-looking statement.
SOURCE PRISZM INCOME FUND
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