Cagim Real Estate Corporation

Cagim Real Estate Corporation

December 21, 2007 09:31 ET

Cagim: Place D'affaires Lebourgneuf, Phase I, Sold for $21,325,000

QUEBEC CITY, QUEBEC--(Marketwire - Dec. 21, 2007) - The public corporation Cagim Real Estate Corporation (TSX VENTURE:CIM) ("Cagim") is proud to announce the conclusion of the sale, through its subsidiary, ADG Immobilier Inc., of one of its properties, namely Place d'Affaires Lebourgneuf, Phase I, located in the Lebourgneuf district of Quebec City, with a rentable area of over 185,000 sq.ft. (the "Property"). The Property, part of Cagim's current real estate holdings and representing a value of approximately 40% of the book value of its assets, has been sold to an affiliated corporation of BTB Real Estate Investment Trust, dealing at arm's length with Cagim, at a purchase price of $21,325,000, representing a capitalisation rate of 8%, partially payable in cash ($8,015,000), with the other portion payable through the assumption of the Property's mortgage balance ($13,310,000). An arm's-length finder's fee of 1.19 % of the Property's value will be paid in cash at closing.

Cagim's Chief Financial Officer, Mr. Denis Lépine, states: "This transaction confirms our strategy and that Cagim is an invaluable player in the Quebec region. Following the sale of Place d'Affaires Lebourgneuf, Cagim will hold over $6,750,000 in cash flow, namely more than $0.50 of liquidity per share. Furthermore, Cagim remains in a position to accomplish, in the near future, the stages which will allow for the corporation to further its business plan and make decisions in favour of its shareholders."

Following the transaction, Guy Boutin, Cagim's Leasing and Development Officer, declares: "Cagim has been named manager of the Property and will continue to maintain business relations with the current tenants and develop further business opportunities with BTB Real Estate Investment Trust."

About Cagim Real Estate Corporation

The Corporation is listed on the TSX Venture Exchange and operates property management and acquisition activities. The Corporation operates its activities through its subsidiaries ADG Immobilier Inc., Complexe Lebourgneuf Inc. and Palim Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cagim Real Estate Corporation
    Mr. Denis Lepine
    Chief Financial Officer
    Cagim Real Estate Corporation
    Mr. Guy Boutin
    Leasing and Development Officer