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TSXV Symbols: FCA.U/FCA
TORONTO, Aug. 16, 2017 /CNW/ - Firm Capital American Realty Partners Corp. (the "Corporation") (TSXV: FCA.U), (TSXV : FCA) is pleased to announce that it has closed the previously announced acquisition of a 50% ownership interest in a joint venture with a New York City based real estate owner and operator (the "Venture"). The Venture acquired a multi-family residential portfolio in Bridgeport, Connecticut (the "Portfolio"), comprised of 14 buildings and 462 apartment units (the "Acquisition"). The Portfolio was acquired at a purchase price, excluding transaction costs, of approximately US$30.5 million, representing a going-in capitalization rate of approximately 6.1%, or approximately US$66,100 per apartment unit.
The Corporation participated as the lead equity investor in the Venture and funded its investment from the net proceeds of the public offering of common shares and warrants completed on May 29, 2017 and cash on hand.
About the Corporation
The Corporation is a U.S. focused real estate investment entity that pursues real estate and debt investments through the following investment platforms:
- Income Producing Real Estate Investments: Acquiring income producing real estate assets in major cities across the United States. Acquisitions are completed by the Corporation primarily in joint venture partnerships with local industry expert partners who retain property management responsibility; and
- Mortgage Debt Investments: Real estate debt and equity lending platform in major cities across the United States, focused on providing all forms of bridge mortgage loans and joint venture capital.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including those described in the Corporation's Annual Information Form under "Risk Factors" (a copy of which can be obtained at www.sedar.com). Those risks include, without limitation, the ability of the Corporation to complete the Offering and if so, to allocate the net proceeds as stated above; risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Corporation holds properties; volatility of real estate prices; inability to complete the Corporation's single family property disposition program or debt restructuring in a timely manner; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Corporation to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, either as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Firm Capital American Realty Partners Corp.
For further information: Kursat Kacira, President & Chief Executive Officer, (416) 635-0221; Sandy Poklar, Chief Financial Officer, (416) 635-0221