CapGain Properties Inc.
TSX VENTURE : CPP

CapGain Properties Inc.

June 24, 2013 16:39 ET

CapGain Properties Inc. Announces Closing of Acquisition

LAKE IN THE HILLS, ILLINOIS--(Marketwired - June 24, 2013) - CapGain Properties Inc. (TSX VENTURE:CPP) is pleased to announce that its wholly-owned subsidiary, CapGain Holdings Inc. ("CapGain") has closed upon its acquisition of a 45.36% interest in the entity Orlando MF Partners LLC ("Orlando MF Partners"), which is a single purpose entity whose sole asset are the properties located at 1200 West Holden Avenue, Orlando, Florida and 4855 South Orange Blossom Trail, Orlando, Florida (the "Properties"). The final purchase price paid by Orlando MF Partners for the Properties was $10,373,301. In addition to the Properties, $300,000 of cash reserves was acquired, bringing the net purchase price to $10,073,301.

The Properties are adjacent to one another and are an extended stay hotel with 140 rooms and an apartment complex with 110 units and were appraised by Whitewater Realty Advisors, LLC. Their report states that as of June 5, 2013 the Properties are worth $13,100,000. The Properties have $7,220,768 worth of debt currently secured against them, and there is accordingly, $5,879,232 worth of equity in the Properties. Through CapGain's interest in the owning entity, CapGain has realized $2,666,820 of equity. It is anticipated the Properties will generate, before debt service, $1,300,000 to $1,700,000 of net operating income annually, 45.36% of which CapGain will realize. Furthermore, CapGain is currently negotiating an option to acquire additional ownership interest in Orlando MF Partners.

Dollar amounts referenced herein are in United States currency.

About CapGain

CapGain is an investment company that is focused on the acquisition of income producing real property in select markets in the United States. The Company's management and expertise within the real estate and finance industries allow it to acquire properties at significantly below market value.

Additional information on CapGain may be accessed through the TMX website (www.tmx.com) and the SEDAR website (www.sedar.com) under the profile for CapGain.

NEITHER THE 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.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of applicable legislation. All statements included in this report and the documents that we incorporate by reference, are forward-looking statements and can generally be identified by words such as "will," "allow," "outlook," or the negative of these terms, and other comparable terminology.

Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether CapGain is able to meet price, performance, quality and delivery requirements. Although CapGain believes that the expectations represented by any forward-looking statements and forward-looking information contained herein are reasonable based on the information available to them on the date of this document, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. CapGain undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

Contact Information

  • CapGain Properties Inc.
    Brian Knight
    Chief Executive Officer
    (847) 854-4213
    bknight@capgain.ca