/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES/
TSXV Symbols: FCA.U/FCA
TORONTO, June 12, 2017 /CNW/ - Firm Capital American
Realty Partners Corp. (the "Corporation") (TSXV: FCA.U/FCA)
is pleased to announce that an affiliate of its asset manager has
entered into a conditional agreement to acquire a 50% ownership
interest in a joint venture with a New
York City based real estate owner and operator (the
"Venture"), to be funded by way of common equity and
preferred equity. The Venture is conditionally expected to acquire
a multi-family residential portfolio in Bridgeport, Connecticut (the
"Portfolio"), comprised of 14 buildings and 462 apartment
units (the "Acquisition"). The Portfolio is to be acquired
at a purchase price, excluding transaction costs, of approximately
US$30.5 million, representing a
going-in capitalization rate of approximately 6.1%, or
approximately US$66,100 per apartment
unit.
The Acquisition is subject to the satisfaction of customary due
diligence conditions and is expected to close in the third quarter
of 2017. The Corporation expects to participate as the lead equity
investor in the Venture, for at least 50% of the amount committed
by the affiliate of the Corporation's asset manager, and intends to
fund its investment from the net proceeds of the public offering of
common shares and warrants completed on May
29, 2017 and cash on hand.
About the Corporation
The Corporation is a U.S. focused real estate investment entity
that pursues real estate and debt investments through the following
investment platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed by the Corporation primarily in joint venture
partnerships with local industry expert partners who retain
property management responsibility; 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 necessarily
involve known and unknown risks, including those described in the
Corporation's Annual Information Form under "Risk Factors"
(a copy of which can be obtained at www.sedar.com). Those risks
include, without limitation, the ability of the Corporation to
complete the Offering and if so, to allocate the net proceeds as
stated above; risks associated with general economic conditions;
adverse factors affecting the U.S. real estate market generally or
those specific markets in which the Corporation holds properties;
volatility of real estate prices; inability to complete the
Corporation's single family property disposition program 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 Corporation to implement its
business strategies; competition; currency and interest rate
fluctuations and other risks.
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.
All forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Except as
required by applicable law, the Corporation undertakes no
obligation to publicly update or revise any forward-looking
statement, either as a result of new information, future events or
otherwise.
Neither the TSX Venture 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.
SOURCE Firm Capital American Realty Partners Corp.
