Fronsac Real Estate Investment Trust

Fronsac Real Estate Investment Trust

September 17, 2014 09:09 ET

Fronsac: Acquisition of Soginci Inc.

MONTREAL, QUEBEC--(Marketwired - Sept. 17, 2014) - (TSX VENTURE:GAZ.UN) As previously announced this week, Fronsac Real Estate Investment Trust ("Fronsac") has signed a letter of intent for the acquisition of all the issued and outstanding shares of Soginci Inc., a holding company that owns five (5) real estate properties. During the financial year ended on September 30th, 2013 the triple nets rental revenues of these five properties reached $ 450 000. The five properties are comprised of lands of approximately 222 220 square feet on which, in four cases, the tenants erected buildings which will revert to Soginci Inc. at the end of the leases. The lands are all rented pursuant to medium and long-term leases. Three properties are located by a national oil company and the last two by franchises national restaurants chains.

A commission of $ 30,000 will be paid equally by the vendors and Fronsac to a real estate agent.

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties, rented to strong tenants under long term, management free and net leases.
Forward-Looking Statements

This press release contains forward-looking statements and information as defined by applicable securities laws, including statements relating to Fronsac and expectations of the management regarding a proposed transaction and the expected benefits thereof. There is no assurance that the proposed transaction will be carried out and that the anticipated benefits will materialize. The proposed transaction is subject to approval and consent of stakeholders and there is no certainty that these will be achieved. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

The TSX Venture Exchange and its regulatory service provider (as that term is defined in the policies of the TSX Venture Exchange) decline all responsibility for the adequacy or accuracy of this release.

Contact Information

  • Michel Lassonde
    President and CEO
    Fronsac Real Estate Investment Trust
    (450) 536-5328