Gulf & Pacific Equities Corp.

Gulf & Pacific Equities Corp.

February 26, 2014 16:15 ET

Gulf & Pacific Equities Corp. Updates on Landlord's Work and Construction Financing for 2014

TORONTO, ONTARIO--(Marketwired - Feb. 26, 2014) -


Gulf & Pacific Equities Corp. (the "Company") (TSX VENTURE:GUF) an established company focused on the acquisition, management and development of anchored shopping centres in Western Canada, is pleased to report that the 2014 landlord's work has commenced at its flagship Tri-City Mall in Cold Lake, Alberta.

The Company anticipates that 2014 will be another busy year as we prepare the premises for a number of new tenants with scheduled openings in 2014. As announced in 2013, Warehouse One signed a new lease for 4,196 sq. ft. in the mall with an anticipated opening in April 2014.

A further 21,000 sq. ft. of landlord's work is scheduled for 2014 with potential for another 15,000 sq. ft. upon completion of lease offers from national tenants. When fully completed in 2014, the total landlord's work will be over 40,000 sq. ft. of newly renovated fashion based retail space.

As well, the Company anticipates that landlord's work will start in 2014 on the St Paul Shopping Centre for a total of 11,000 and possibly up to 36,000 sq. ft.

In 2013, the Company completed a total 36,000 sq. ft., of landlord's work for its new tenants Dollar Tree in St. Paul Shopping Centre, and Dollar Tree, Sportchek and Ardene in Tri-City Mall.

To finance the landlord's work, the Company has signed a revolving unsecured loan agreement with Ceyx Properties Ltd. (the "Ceyx") for up to $5 million at an annual interest rate of 6% with no fixed terms for repayment. Ceyx and the Company are related by virtue of the fact that they have the same President. Interest will be accrued and non-compounding. As of today, the Company has drawn down a total of $2,500,000 on the revolving unsecured loan.

The Company anticipates refinancing of the properties once the redevelopments are completed at which time the revolving unsecured loan will be retired.

About Gulf & Pacific Equities Corp.

Gulf & Pacific Equities Corp. was incorporated under the laws of the Province of Alberta on April 8, 1998 and thereafter completed a public offering of common shares by prospectus dated June 26, 1998 (TSX VENTURE:GUF).

The Company acquires, manages and develops anchored shopping malls in rural centres in Western Canada, in particular Alberta. Gulf & Pacific targets smaller, but rapidly growing hub communities that have hospital, high school, police station and retail/service infrastructure. Management has consistently reinvested cash flow to improve and grow its portfolio of income properties.

Gulf & Pacific Equities Corp. currently owns four, well-located retail assets located in Three Hills, St. Paul and Cold Lake Alberta, as well as in Merritt B.C..

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. Cautionary Statements

This news release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation, concerning the business, operations and financial performance and condition of Gulf & Pacific Equities. Forward-looking statements include, but are not limited to, statements with respect to the benefits of the offering and option transaction. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Gulf & Pacific Equities to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: economic conditions in Western Canada, interest rates, raising less than the required capital; not realizing on the anticipated benefits from the transaction or not realizing on such anticipated benefits within the expected time frame; and other risks of the real estate industry. Although management of Gulf & Pacific Equities has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Gulf & Pacific Equities does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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