Urbanfund Corp.
TSX VENTURE : UFC

October 20, 2009 13:18 ET

Urbanfund Corp. Announces Signing of Purchase Agreement to Acquire 585 Suite Portfolio in Kitchener and Toronto, Ontario

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2009) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the "Company"), confirmed today that the Company has entered into a conditional Purchase Agreement with an arm's length party for the acquisition of 7 apartment buildings and 54 rental townhouses with a total of 585 suites located in Kitchener and Toronto, Ontario.

The total purchase price is approximately $53,407,000 prior to customary adjustments. The properties included in the transaction are free and clear of existing mortgages and it is the intention of Urbanfund to secure Canada Mortgage and Housing Corporation (CMHC)-insured first mortgage financing.

"This acquisition confirms our continuing strategy of purchasing quality multi-family residential properties", stated Mitchell Cohen. "It is not often that you find a portfolio of solid performing real estate assets like this and especially in geographical areas of historical low vacancy rates". The transaction is conditional on Urbanfund completing due diligence, securing CMHC first mortgage financing and satisfying any shareholder and regulatory requirements (including approval of the TSX Venture Exchange). Closing is expected to take place in late December 2009.

"The assets are all well maintained, professionally managed and have low vacancy rates", stated Cohen. "The limited amount of balconies, elevators and underground parking garages will benefit our operating costs and future capital expenditures".

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 prospects and opportunities.

Statements about the Company's future plans and intentions, proposed acquisitions, proposed mortgage financing, 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 filed on SEDAR at www.sedar.com.

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