CHC CHC Student Housing Corp

TORONTO, ONTARIO--(Marketwired - May 1, 2014) - CHC Realty Capital Corp. ("CHC" or the "Company") (TSX-VENTURE:CHC) is pleased to announce that it has entered into an assignment and assumption agreement (the "Assignment Agreement") with CHC Realty Investments Inc. ("CHC Investments"), a company owned by Mark Hansen, President, CEO and a director of the Company and Craig Smith, a director of the Company, to acquire a student housing property located in Sudbury, Ontario (the "Property") from 979101 Ontario Limited (the "Vendor"), an arm's length party to CHC and CHC Investments.

The Property is a newly repurposed student housing property situated at 50 Lisgar Street in downtown Sudbury, across the street from the city's main bus terminal and less than 300 meters away from Laurentian University's School of Architecture and approximately 4.7 km from the University's main Sudbury Campus. The Property is a six storey former office building originally constructed around 1970 that was converted to a student residence with main floor commercial space in 2013. The building contains a total area of approximately 28,965 sq. ft. and is comprised of 70 beds in 50 student apartments on the upper floors and approximately 4,500 sq. ft. of ground floor commercial space.

The purchase price for the Property is $5.5 million, subject to adjustments, which CHC intends to satisfy through mortgage financing on the Property in the principal amount of $3.5 million and the payment to the Vendor of the balance of the purchase price of $2.0 million in cash from CHC's existing funds.

Under the Assignment Agreement, the Company has taken an assignment of all rights and benefits and assumed all obligations of CHC Investments, as purchaser, in respect of an agreement of purchase and sale (the "Purchase Agreement") between CHC Investments as purchaser and the Vendor dated February 11, 2014. CHC Investments has not been paid any fees or received any consideration for the assignment of the Purchase Agreement to the Company. CHC Investments paid a $200,000 deposit (the "Deposit") to the Vendor upon execution of the Purchase Agreement, which is now non-refundable deposit as a result of the satisfaction of the purchaser's due diligence condition in respect of the acquisition. Under the terms of the Assignment Agreement, the Deposit will be repaid by the Company to CHC Investments, without interest, fees or other consideration. In addition to the Deposit paid by CHC Investments, CHC has paid the Vendor an additional $300,000 non-refundable deposit as a result of the satisfaction of the purchaser's due diligence condition in respect of the acquisition.

Under the Purchase Agreement, the Vendor has agreed to pay to the Company an income guarantee on monthly gross rental income from the residential component of the Property based on 95% occupancy for a period of six months after the closing date. In addition, the Vendor has agreed to pay to the Company certain amounts under a head lease for any commercial space which is vacant on closing.

The acquisition of the Property is subject to receipt of all necessary regulatory approvals, including the approval of the TSXV. In addition, the acquisition of the Property is subject to certain closing conditions, including the completion of financing arrangements with the mortgage lender and the receipt of a final occupancy permit for the building from government authorities by no later than December 1, 2014. The acquisition of the Property is expected to close within twenty business days from the receipt of the final occupancy permit or waiver of such condition by the Company.

In connection with the acquisition of the Property, CHC plans to enter into property management arrangements with a third party property management service provider pursuant to which it will become the property manager of the Property, in consideration for which it will receive a fee calculated on the basis of the Property's aggregate gross revenue to be negotiated.

About CHC Realty Capital Corp.

CHC Realty Capital Corp. is an owner and operator of student housing properties which is focused on acquiring high quality properties in close proximity to universities and colleges in primary and well understood secondary markets in Canada.

Cautions Regarding Future Plans and Forward Looking Information

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 proposed transaction and the business strategies of CHC. Although CHC believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. 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. CHC cautions investors that any forward-looking information provided by CHC 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: CHC's ability to complete the proposed transaction; the state of the real estate sector in the event the proposed transaction is completed; recent market volatility; CHC's ability to secure the necessary mortgage financing or to be fully able to implement its business strategies and other risks and factors that CHC is unaware of at this time. The reader is referred to CHC's initial public offering prospectus and other continuous disclosure documents for a more complete discussion of risk factors relating to CHC and their potential effects, copies of which may be accessed through CHC's profile on SEDAR at www.sedar.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The TSXV has in no way passed upon the merits of the proposed transaction 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.

CHC Realty Capital Corp.Mark HansenPresident and Chief Executive Officer(647) 288-9355mhansen@chcrealty.caCHC Realty Capital Corp.Robert WaxmanChief Financial Officer(647) 288-9375rwaxman@chcrealty.ca

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