TORONTO, March 14, 2013 /CNW/ - Edgefront Realty Corp. ("Edgefront") (TSXV: ED) announces today that it has agreed to purchase an approximate 28,950 square foot two-storey Class A office property in Miramichi, New Brunswick (the "Property") for a total price of $5.465 million (the "Transaction"). Newly built in 2012, the Property is leased to a department of the federal government until September 30, 2022 (with one five-year renewal option). Edgefront intends to satisfy the total price with cash on hand as well as cash generated from a new 10 year mortgage. Edgefront expects to complete the Transaction on or about April 15, 2013.
The Transaction, which has not yet received TSXV approval, is an Arm's Length Transaction (as that term is defined in TSXV Policy 1.1).
"Management is acquiring properties that will serve as the foundation for a top-tier portfolio of real estate assets. We are pleased to be strengthening our presence in Atlantic Canada; with long term, strong credit tenants" commented Kelly Hanczyk, Edgefront's Chief Executive Officer. "We are very excited about what lies ahead for Edgefront and its shareholders."
Edgefront is a growth oriented, diversified real estate company focused on increasing shareholder value through the acquisition, ownership and management of commercial real estate assets initially located in secondary markets. It is the intention of Edgefront to expand its business of purchasing, owing and operating real estate assets and to raise funds in the marketplace in order to convert Edgefront into a real estate investment trust having an external asset management structure, subject to receipt of all necessary approvals, including that of the TSXV.
Completion of the Transaction remains subject to TSXV approval. There can be no assurance that the Transaction will be completed as proposed or at all.
The TSXV has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the Transaction. Although Edgefront believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. In particular, this news release contains forward-looking information relating to the expected completion of the Transaction and the business strategies of Edgefront
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Edgefront cautions investors that any forward-looking information provided by Edgefront is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: Edgefront's ability to complete the Transaction; the state of the real estate sector in the event the Transaction is completed; recent market volatility; Edgefront's ability to raise the necessary capital or to be fully able to implement its business strategies and other risks and factors that Edgefront is unaware of at this time. The reader is referred to Edgefront's initial public offering Prospectus and Filing Statement for a more complete discussion of risk factors relating to Edgefront and their potential effects, copies of which may be accessed through Edgefront's page on SEDAR at www.sedar.com.
SOURCE: Edgefront Realty Corp.
For further information:
Kelly C. Hanczyk at (416) 906-2379.