Altus Group Income Fund

Altus Group Income Fund

May 12, 2005 08:58 ET

Altus Group Income Fund Files Prospectus

TORONTO, ONTARIO--(CCNMatthews - May 12, 2005) - Altus Group Income Fund (the "Fund") today announced it has entered into an underwriting agreement and has filed a prospectus in each of the provinces and territories of Canada in connection with its initial public offering of 7,500,000 units at a price of $10 per unit for total gross proceeds of $75,000,000. Based on the offering size and price, the units are expected to produce an initial annual yield of 11.5 percent through the payment of monthly distributions. The Fund also granted to the underwriters of the offering an over-allotment option to acquire an additional 537,826 units.

The proceeds of the offering will be used to indirectly acquire approximately 65 percent of the limited partnership units of Altus Group Limited Partnership, with the balance retained by the existing investors of the Altus Group, the Helyar Group and Derbyshire Viceroy or a management partnership established by them. The closing of the offering is subject to customary conditions and is expected to occur on or about May 19, 2005.

The offering is being underwritten by a syndicate led by BMO Nesbitt Burns Inc., that includes CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc. and Canaccord Capital Corporation.

The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America.

Through its operating divisions, currently operated by the Altus Group, a valuation and research and realty tax management firm, Helyar & Associates, a construction cost and development cost management firm, and Derbyshire Viceroy, a realty tax management firm, the Fund will be the leading independent multidisciplinary provider of real estate consulting and advisory services in Canada, provided by a staff of over 300 professionals from a national network of offices in 13 cities. Its clients will include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords.

Contact Information

  • Altus Group Income Fund
    Gary Yeoman
    (905) 953-9948