Delavaco Residential Properties Corp. Announces Acquisition of Residential Units in New Jersey

TORONTO, ONTARIO--(Marketwired - March 27, 2014) -

NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES

Delavaco Residential Properties Corp. ("Delavaco") (TSX VENTURE:DVO.U) and York Plains Investment Corp. announce that that they have entered into a share purchase agreement (the "Share Purchase Agreement") pursuant to which Delavaco would acquire all of the issued and outstanding shares of H60 Canada Inc., for an aggregate purchase price of US$6,240,000 (the "Transaction"). H60 Canada Inc. indirectly owns 19 residential properties (the "Properties") located in New Jersey, consisting of a total of 96 separate rental units (the "Units").

The aggregate purchase price is payable as follows: US$3,120,000 by the issuance of 3,120,000 common shares of Delavaco ("Delavaco Shares") based on the share price of US$1.00 per Delavaco Share, representing a premium of approximately 3.1% from US$0.97, the closing price of the Delavaco common shares on the day before this announcement, and two promissory notes (the "Notes") in favour of the vendors in the principal aggregate amount of US$3,120,000, secured by a first ranking lien over the Properties. The aggregate amount owed pursuant to the Notes is subject to a working capital adjustment, and the Notes will not bear interest until the date on which the occupancy rate of the Units exceeds 90%, at which point they will bear interest of 5.5% per annum, with a maturity date that is six months from the closing of the Transaction. The Transaction is expected to close on or about May 1, 2014, subject to customary closing conditions, including the receipt of TSX Venture Exchange approval.

Andrew DeFrancesco, Chairman and Chief Executive Officer of Delavaco comments: This New Jersey acquisition was a perfect complement to Delavaco's expanding footprint of approximately 1,600 units. New Jersey is a strong market providing a healthy base of subsidized renters while it delivers a robust population of renters and desired cap rates with property appreciation. The portfolio is a 25 to 30 minute drive from Manhattan and Jersey City demonstrating our ability to source in growing urban areas.

About Delavaco

Delavaco Residential Properties Corp. was formed on January 27, 2011 to take advantage of the US housing crisis, by its founders Andrew DeFrancesco and Dallas Wharton, with the goal of significant capital appreciation through the recovery of the housing sector. Now a public company, Delavaco has its shares listed and posted for trading on the TSX Venture Exchange. Delavaco is focused on the ownership and management of single and multi-family residential properties located principally in the south-eastern United States. Upon closing of the Transaction, Delavaco's real estate portfolio will consist of more than 520 single-family homes in Florida, more than 310 single-family homes in Georgia, more than 300 multi-family units in Florida and Texas and 96 multi-family units in New Jersey. Delavaco's acquisition strategy involves the identification and purchase of under-valued residential properties located in highly populated and dynamic urban centers within the lower to middle income demographic sector with tenants who qualify for government funding under the United States rental voucher assisted program. Delavaco's security holders include some of the leading Canadian institutional investors and real estate holding companies.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to Delavaco's intended acquisition focus. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of Delavaco to implement its business strategies; competition; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the 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.