TORONTO, Nov. 26, 2019 (GLOBE NEWSWIRE) -- Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX Venture: “UFC”) (“Urbanfund” or, the “Company”), announced today that the Company, along with Westdale Construction Limited (“Westdale”), has completed the previously- announced acquisition of the 145 unit Bellbrook and Regal Luxury Apartment portfolio located in Dartmouth, Nova Scotia. An incorporated subsidiary, Bellbrook Residential Inc. (the “Purchaser”), will purchase the portfolio with the Company being a 20% shareholder and Westdale retaining the remaining 80% interest.
“Urbanfund is very excited to be part of this opportunity to purchase an interest in this 3-building luxury portfolio,” stated Mitchell Cohen. “This institutionally-owned and managed portfolio will be a worthy addition to our mixed-use asset base.”
“This acquisition is an opportunity to augment our current Dartmouth holdings with 145 'condo quality' units. Rarely does an occasion happen to pick up this calibre of a residential portfolio,” stated Cohen.
The Bellbrook and Regal Luxury Apartment Portfolio offers a variety of large 2-bedroom suites of exceptional quality over 3 separate buildings built between 2005 - 2007. The luxury project caters primarily to “empty-nesters” with its spacious units, ample terraces, on-site amenities, generous outdoor amenity space and proximity to local transit, shopping and greenspace.
The Purchaser purchased the portfolio for $33,350,000 plus customary closing costs. The purchase price was funded by a $24,000,000 mortgage and the balance by pro rata equity subscriptions from the Company and Westdale. The Company’s subscription for a 20% interest in the Purchaser was satisfied with cash on-hand. The Company agreed to indemnify Westdale for its pro rata share of the obligations, if any, Westdale may have to the lender in Westdale’s capacity as guarantor. Property Management will be the responsibility of Westdale and will be compensated at market rates.
“Patience truly is a virtue as we have been waiting to pick up these types of assets in such a highly desired location and we executed on it,” noted Cohen. “With its proximity to our other Dartmouth assets, we will look to take advantage of economies of scale.” The portfolio is in the Portland Hills area of Dartmouth which is a popular, vibrant and affluent community characterized by a highly educated and affluent demographic. Situated along Lake Morris, the neighbourhood is defined by its beautiful landscaped and natural surroundings, including walking trails and parks.
ABOUT URBANFUND CORP.
Urbanfund Corp. is a Toronto-based real estate development and operating company. Urbanfund’s focus is to identify, evaluate and invest in real estate or real estate related projects. The Company’s assets are located in Brampton, Belleville, Kitchener, London and Toronto, Ontario, Quebec City and Montreal, Quebec and Dartmouth, Nova Scotia. The Company’s strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.
This press release contains certain forward-looking statements, which reflect Management’s expectations regarding the Company’s growth, results of operations, performance and business prospects and opportunities. Statements about acquisition of the Bellbrook and Regal Luxury Apartment portfolio in Dartmouth, Nova Scotia constitute forward-looking statements. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect Management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: general economic and market segment conditions, interest rates, costs outside of the Company’s control such as Real Estate Taxes and utilities, the ability of tenants to satisfy their contractual rent obligations and any unforeseen repair, maintenance or replacement of the Company’s assets. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the “Risks and Uncertainties" section of the Company’s most recent Management’s Discussion and Analysis.
For further information, please contact:
President, Chief Executive Officer and Director
406-703-1877 extension 1025
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