All amounts are in US dollars unless otherwise stated
TORONTO, Ontario, Feb. 22, 2018 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Corp. (the “Company”) (TSXV:FCA.U) (TSXV:FCA) is pleased to provide the following update regarding its 7.0% convertible unsecured debentures (the “Debentures”) and Single Family Disposition Program:
DEBENTURES REPAYMENT UPDATE
During the quarter ended December 31, 2017, the Company repaid approximately $0.5 million of the Debentures from cash generated from ongoing single family home sales. Subsequent to the quarter end, the Company repaid a further $1.5 million of the Debentures. Overall, the Company has repaid approximately $6.4 million or 37% of the Debentures, leaving a current outstanding balance of approximately $10.9 million.
SINGLE FAMILY DISPOSITION PROGRAM UPDATE
Outside of 120 single family homes located in Atlanta as further discussed below, the Company currently owns 24 single family homes located Atlanta, New Jersey and Florida. Of these homes, the Company has conditional sales contracts in place for 15 of them for anticipated gross proceeds of approximately $4.4 million. These single family home sales are anticipated to close during the first quarter of 2018 and the net proceeds generated will be used for Debenture repayments.
Once these conditional single family home sales are completed, the Company will be left with only nine properties located in Florida and Atlanta, which are all listed for sale with various third party real estate brokers.
ATLANTA SINGLE FAMILY HOMES PORTFOLIO UPDATE
After a fully marketed sales process, the Company is pleased to announce that it has entered into a conditional contract with an unrelated third party to dispose of its entire portfolio of 120 single family homes located in Atlanta (the “Atlanta Portfolio”) that is encumbered by a $4 million first mortgage for an anticipated gross value of approximately $10.6 million, which represents a premium above the Company’s book value for the Atlanta Portfolio as at September 30, 2017 of approximately 38% or $0.48 per share. The anticipated proceeds of $6.6 million after repayment of the first mortgage will be used to further repay the Debentures. The transaction is subject to customary closing conditions, including, but not limited to, financing conditions, and is expected to close in the second quarter of 2018.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm Capital American Realty Partners Corp. is a U.S. focused real estate investment entity that pursues real estate and debt investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring income producing 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 responsibilities; 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 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, debt repayments 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.
Additional information about the Company is available at www.firmcapital.com or www.sedar.com.
For further information, please contact:
Kursat Kacira
President & Chief Executive Officer
(416) 635-0221
Sandy Poklar
Chief Financial Officer
(416) 635-0221