Urbanfund Corp.
TSX VENTURE : UFC

September 16, 2009 10:45 ET

Urbanfund Corp. Announces Acquisition of Interest in Signature Redevelopment Site at Yonge & Bloor

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2009) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the "Company"), announced today that the Company completed the acquisition of an interest in the high density residential/commercial re-development site located at the southeast corner of Yonge and Bloor Streets in Toronto, Ontario (the "Property").

Urbanfund invested alongside Westdale Construction Co. Limited ("Westdale"), Urbanfund's largest shareholder, to form Bloor East Holdings Inc., which holds a 33.33% in the Property. Urbanfund purchased a 10% interest in Bloor East Holdings Inc., resulting in Urbanfund indirectly holding an approximately 3.33% interest in the Property.

"The Property is arguably one of the best mixed-use sites available in Canada today and we moved quickly to be part of this acquisition" said Mitchell Cohen. "To hold an interest in a signature project of this size and magnitude at the crossroads of the Bloor and Yonge subway lines is a strategic acquisition for Urbanfund; and we will continue to look for more of these transactions. Our relationship with Westdale provided us with access to this investment opportunity. Without Westdale's prominence in the real estate market, such an opportunity may not have presented itself to Urbanfund".

This 50,400 square foot vacant development site was previously slated to be the 80 storey "One Bloor Street East" condominium site that saw prospective purchasers of condominiums line up for weeks to own a piece of this corner. "With land prices down dramatically, we viewed the opportunity to have Urbanfund involved in the re-design and re-marketing of the site as an opportunistic transaction" said Cohen.

Distinguished home and condominium builder, Great Gulf Homes, will be the developer of the Property. More information on Great Gulf Homes can be found at www.greatgulfhomes.com.

On closing, Urbanfund advanced its pro rata portion of the purchase price and anticipated pro rata portion of closing and pre-development costs, in the aggregate amount of $2,000,000, which was funded out of the Company's cash on hand.

Urbanfund Corp. is a Toronto-based real estate development and operating company. The Company's common shares trade under the symbol UFC on the TSX Venture Exchange. Urbanfund's focus is to identify, evaluate and invest in real estate and real estate related projects. The Company's assets are located in Toronto, Belleville and London, Ontario. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements, which reflect Management's expectations regarding the Company's growth, results of operations, performance and business prospects and opportunities.

Statements about the Company's future plans and intentions, results, levels of activity, performance, goals or achievements or other future events constitute forward-looking statements. Wherever possible, words such as "may," "will," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect Management's current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: general economic and market segment conditions, interest rates, costs outside of the Company's control such as real estate taxes and utilities, the ability of tenants to satisfy their contractual rent obligations and any unforeseen repair, maintenance or replacement of the Company's assets. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the "Risks and Uncertainties" section of the Company's most recent Management's Discussion and Analysis.

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

  • Urbanfund Corp.
    Mitchell Cohen
    President & CEO
    (416) 703-1877x225