Cagim Real Estate Corporation

Cagim Real Estate Corporation

November 10, 2009 08:48 ET

Cagim Real Estate Corporation: Finalized Acquisition of Commercial Land and a Commercial Building

QUEBEC CITY, QUEBEC--(Marketwire - Nov. 10, 2009) - Cagim Real Estate Corporation (TSX VENTURE:CIM) (the "Corporation" or "Cagim"), a real estate management and acquisition corporation, is pleased to announce the finalized acquisition, in co-ownership, of commercial land, as well as the acquisition of a commercial building through the purchase of 100% of shares of all categories from the capital of Societe Immobiliere Albatros Inc.

Commercial Land

The Corporation's management confirms the acquisition of commercial land located in the Lebourgneuf sector of Quebec City, adjacent to the developing Complex Lebourgneuf building owned by Cagim. The land has been acquired in co-ownership with Urban Intensification Fund LP at a price of $837,097.73. "The acquisition of this land certainly reinforces our leadership position in the Lebourgneuf sector of the Old Capital region" announced Mr. Guy Boutin.

This transaction is part of the Corporation's strategic expansion plan. The Corporation's management is confident that its management expertise will contribute once again to the increase in value of this new asset for the benefit of its shareholders.

Commercial Building

Furthermore, management announces the finalized acquisition of 100% of shares of all categories from the capital of Societe Immobiliere Albatros Inc., which holds as its principal asset a commercial building located in St-Augustin-de-Desmaures, Quebec (the "Property"). Based upon an independent evaluation, the Corporation's Board of Directors established the purchase price of shares at $810,000, of which $110,000 is payable cash by Cagim, involving the assumption of a hypothec in favor of Bank of Montreal, valued at $1,690,000. The balance is payable through the issuance to the Vendors of 1,400,000 class "A" shares of the Corporation, at a deemed price of $0.50 per share. The acquisition price represents a capitalization rate of 10%.

The Property houses Brink's Canada Ltd., a unique AAA tenant for the following 15 years.

These shares were acquired from Fonds FBL Inc., Gestion Alain Larochelle Inc., Capital Transit Inc., Gestion Best Inc. and Polatos Investments Corp. (the "Vendors"), implicating certain insiders of the Corporation as principal shareholders and directors of the Vendors. Mr. Guy Boutin acts as Director and Leasing, Acquisitions and Development Director of the Corporation, Mr. Stephane Beshro acts as Director and President of the Corporation, and Mr. Alain Larochelle acts as Director of the Corporation.

Seeing that the transaction does not represent 25% of the Corporation's market capitalization and that it implicates certain parties related to the Corporation, the transaction is not subject to Part 5 of Regulation 61-101 respecting protection of minority security holders in special transactions.

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. and Complexe Lebourgneuf Inc.

Neither 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.

Contact Information

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