TORONTO,
April 15, 2013 /CNW/ - Edgefront
Realty Corp. ("Edgefront") (TSXV: ED) announces today that
it has agreed to purchase a 71,800 square foot retail/office
property in Bedford, Nova Scotia,
a 24,200 square foot retail/office property in Bedford, Nova Scotia and a 23,100 square foot
single-tenant office property in Halifax,
Nova Scotia (collectively, the "Properties") for an
aggregate purchase price of approximately $31.3 million. The Bedford properties are multi-tenant
retail/office properties that are 98% and 100% occupied, with an
average remaining lease term of 4.5 years and 7 years,
respectively, while the Halifax
property is fully leased to a department of the government of the
Province of Nova Scotia for a
remaining term of 7 years.
The purchase price for the Properties will be
satisfied through a combination of cash generated from new
mortgages and/or the issuance of new securities by Edgefront, and
the assumption of existing mortgages on the Properties.
The acquisition of the Properties, which has not
yet received TSXV approval, are Arm's Length Transactions (as that
term is defined in TSXV Policy 1.1), and are subject to certain
other closing conditions, including completion of satisfactory due
diligence, receipt of any necessary shareholder and other
regulatory approval and successful financing. Assuming satisfaction
of all closing conditions, Edgefront expects to complete the three
acquisitions no later than July 15,
2013.
"Management is continuing to acquire high
quality properties; securing our presence in Atlantic Canada", commented Kelly Hanczyk, Edgefront's Chief Executive
Officer. "We are very excited to continue to grow our portfolio and
increase value for shareholders. This also represents part of
the foundation which we believe is needed in order to successfully
implement our strategy to convert Edgefront into a diversified real
estate investment trust."
About Edgefront
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, owning 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 acquisition of Properties
(the "Transactions") remains subject to TSXV approval. There
can be no assurance that the Transactions will be completed as
proposed or at all.
The TSXV has in no way passed upon the merits
of the Transactions 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 Transactions. 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 Transactions 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 Transactions;
the state of the real estate sector in the event the Transactions
are completed; recent market volatility; Edgefront's ability to
secure the necessary financing 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.