Cagim Real Estate Corporation

Cagim Real Estate Corporation

September 28, 2007 11:38 ET

Cagim: Preliminary Cooperation Agreement With BTB Real Estate Investment Trust and Sale of Property

QUEBEC CITY, QUEBEC--(Marketwire - Sept. 28, 2007) - The public corporation Cagim Real Estate Corporation (TSX VENTURE:CIM) ("Cagim") announces the acceptance of a conditional sales offer between its subsidiary, ADG Immobilier Inc., and BTB Real Estate Investment Trust ("BTB"), for the sale of one of its properties, namely the commercial and office property located at 6655, Pierre-Bertrand Boulevard in the Lebourgneuf district of Quebec City, with a rentable area of 186,054 sq.ft. (the "Property"). The Property, representing 45% of the book value of Cagim's assets, is being sold at a purchase price of $21,450,000 payable in cash at closing, scheduled for Cagim's 4th trimester. This arm's-length transaction will cover the Property's mortgage balance of $13,373,000. The sales offer remains subject to standard due diligence conditions and the approval of the TSX Venture Exchange. A finder's fee of a maximum of 2 1/2 % of the Property's value will be paid in cash at closing. Within the terms of this agreement with BTB, Cagim is nominated as manager of the Property and both parties have agreed to develop further business opportunities together.

The Board's President, Mr. Clement Joly, F.C.A. confirms: "With the new projected projects, namely the Mega Centre Saguenay and Complexe Lebourgneuf, and the sale in June 2007 of Centre commercial Place Donnacona, Cagim is well positioned for future acquisitions."

Mr. Guy Boutin adds: "Cagim's development projects for 2007 will allow for further growth of shareholder equity and a partnership with BTB would launch our corporation among the first ranks of the real estate sector in our operating regions."

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