WEST SIDE SQUARE DEVELOPMENT FUND RAISES US$50 MILLION MAXIMUM SIZE INITIAL PUBLIC OFFERING AND ACQUIRES INTEREST IN WEST SIDE SQUARE PROJECT
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Nov. 9, 2023 /CNW/ - West Side Square Development Fund (the "Trust") announced today that it has raised its maximum offering size of US$50 million and completed its initial public offering (the "Offering"). Pursuant to the Offering, the Trust issued US$50,000,000 of trust units, consisting of 3,920,170 Class A Units, 57,500 Class E Units, 1,483,000 Class F Units and 1,022,000 Class U Units (collectively, the "Units") at a price of C$10.00 per Class A Unit and Class F Unit and US$10.00 per Class E Unit and Class U Unit.
The Trust is a newly-created, unincorporated investment trust and was established for the primary purpose of indirectly owning an interest in the development of a mixed-use purpose-built rental building containing 477 rental units and approximately 9,800 square feet of commercial space located at 66 Broadway in the Journal Square neighborhood in Jersey City, New Jersey (the "Project"). The Project is located a mile away from the Journal Square Transportation Center, which is an approximate 13-minute train ride from the financial district of Manhattan.
Immediately following closing of the Offering, the Trust indirectly acquired an interest in the Project. Each of Altree Developments Inc. ("Altree"), Avenir Jersey Developments Limited (a company owned by associates of Lanterra Developments Inc.), and Westdale Construction Co. Limited, the sponsors of the Trust, as well as their minority co-investors have retained an ownership interest in the Project. The Trust is managed by Altree Management Inc., an affiliate of Altree.
"We are extremely pleased with the successful completion of the maximum size offering for West Side Square Development Fund. The Trust is the only public single-asset development fund in the market, and we are excited to bring the Project to life," said Zev Mandelbaum, Chief Executive Officer of the Trust and Altree. "We welcome our new co-investors in the Project and look forward to delivering on the Trust's objectives and creating value for unitholders."
The Units were offered to the public by CIBC World Markets Inc., the sole agent for the Offering.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold within the United States unless registered under the 1933 Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the 1933 Act and applicable state securities laws.
West Side Square Development Fund
West Side Square Development Fund was formed for the primary purpose of indirectly owning an interest in the development of a mixed-use purpose-built rental building containing 477 rental units and approximately 9,800 square feet of commercial space located at 66 Broadway in the West Side Square neighborhood in Jersey City, New Jersey.
Forward-Looking Statements
This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the Trust regarding future events, including statements concerning the development of the Project and creating value for unitholders. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Material factors and assumptions used by management of the Trust to develop the forward-looking information include, but are not limited to, the Trust's current expectations about: real property ownership and revenues; construction and development risk; obtaining necessary development permits for the Project; the realization of property value appreciation and timing thereof; the inventory of mixed-use properties; competition from developers of mixed-use properties; the Jersey City, New Jersey real estate market; government legal and regulatory changes; property encumbrances relating to the Project; significant fixed expenditures and fees in connection with the maintenance, operation and administration of the Project; closing and other transaction costs in connection with the acquisition and disposition of the Project; the availability of mortgage financing and current interest rates; revenue shortfalls; assumptions about rental growth rates in the U.S. mixed-use real estate market, demographic trends and the markets in which the Trust intends to operate; fluctuations in interest rates; litigation risks; the relative illiquidity of real property investments; the U.S. economic environment; the geographic concentration of the Trust's business; demand levels for mixed-use properties in Jersey City and local economic conditions; negative geopolitical events; public health crises; the capital structure of the Trust; distributions; capital depletion; foreign currency exchange rates and assumptions related thereto; potential conflicts of interest; reliance on the good faith and ability of the manager of the Trust to manage and operate the Project; reliance on other third-party property management companies; the limited operating history of the Trust; the limited experience of management of the Trust with respect to managing a reporting issuer; the limited liquidity of the Units; and tax laws. While management of the Trust considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the Trust's internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Trust's control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the Trust's final prospectus, including under the heading "Risk Factors" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Trust undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
SOURCE West Side Square Development Fund
NATALIE LEIBOWITZ, CHIEF FINANCIAL OFFICER, WEST SIDE SQUARE DEVELOPMENT FUND, (416) 571-0111, [email protected]
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