All amounts are in $US Dollars unless otherwise stated
TORONTO, Feb. 6, 2017 /CNW/ - Firm Capital American Realty Partners Corp. (the "Company"), (TSXV : FCA.U) is pleased to announce that for the period from October 1, 2016 through to February 1, 2017, the Company has repaid approximately $5.0 million of the Senior Secured Notes ("SSN") and $0.7 million of the New Jersey Promissory Notes ("NJPN") leaving outstanding balances of approximately $6.5 million and $2.4 million of the SSN and NJPN, respectively.
As reported in its Management Discussion and Analysis ("MD&A") for the quarter ended September 30, 2016, the Company had under contract 48 single family homes units located in Florida for gross proceeds of approximately $3.1 million and 15 single family home units located in Georgia for gross proceeds of approximately $0.8 million for total gross proceeds of approximately $3.9 million. The Company is now pleased to report that it has closed sales on 87 single family home units located in Florida, New Jersey and Atlanta for total gross proceeds of approximately $5.3 million and net proceeds of approximately $4.7 million for the period from October 1, 2016 through to February 1, 2017. The variance between gross proceeds and net proceeds of $0.6 million is attributed to closing costs which include, but are not limited to selling commissions, legal and title document closing costs. The net proceeds from these single-family homes sales, along with existing cash resources were used to make the $5.7 million in SSN and NJPN repayments. The annual interest expense savings from these debt repayments is approximately $0.4 million.
The Company believes that the continuing sale of the single-family home portfolio accompanied by the pay down of debt strengthens its balance sheet while increasing operating income by eliminating the costs associated with operations of the single-family homes.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm Capital American Realty Partners Corp. focuses on capital partnership investing in U.S. income producing real estate & mortgage debt investments.
The Company is focused on the following investment platforms:
- Income Producing Real Estate Investments: Acquiring income producing U.S. real estate assets in major cities across the United States. Acquisitions are completed solely by the Company or in joint-venture partnership with local industry expert partners who retain property management; and
- Mortgage Debt Investments: Real estate debt and equity lending platform focused on 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 in this news release include, but are not limited to, statements with respect to the Company's intention to complete the sale of its single-family homes and ultimate debt repayments, potential capital financing and growth opportunities, as well as the Company's intention to acquire income producing U.S. real estate assets and complete joint venture partnerships and mortgage debt and equity lending investments. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Company holds properties; volatility of real estate prices; inability to complete the Company'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 Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks, including those described in the Company's public disclosure documents on SEDAR at www.sedar.com.
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. Forward- looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the 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: Robert McKee, Interim President & Chief Executive Officer, (416) 635-0221; Sandy Poklar, Chief Financial Officer, (416) 635-0221