Madison Pacific Properties Inc.

April 03, 2006 19:30 ET

Madison Pacific Properties Inc. 'TSX:MPC' Announces Equity Investment in MP Western Properties Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2006) - Madison Pacific Properties Inc. ("Madison") (TSX:MPC), a Vancouver-based real estate company, announces that is has acquired approximately 99.73% of the equity of MP Western Properties Inc. (formerly Fuel Cell Technologies Corporation) ("MP Western").

Under the transaction, MP Western received shareholder and regulatory approval to be restructured under a plan of arrangement (the "Arrangement") whereby a) all of the assets and liabilities of MP Western's operating subsidiary were transferred to a new company that will carry on the former fuel cell business carried on by Fuel Cell Technologies Corporation, and b) Madison acquired 3,200,000 Class B Voting Common Shares ("Common Shares") and 72,602,667 Class A Non-Voting, Participating Shares ("Non-Voting Shares") of MP Western for $1.55 million. Madison and MP Western have no interest in the new fuel cell company.

In addition, Madison has completed a sale of interests in 17 of its industrial and commercial properties to MP Western. The properties have a net asset value of $72,601,218 and, in consideration therefore, MP Western issued 3,550,876,357 Non-Voting Shares to Madison at a deemed price of $0.020446 per share.

As a result of the transactions, Madison owns 3,200,000 Common Shares of MP Western, representing approximately 39.54% of the outstanding Common Shares and 3,623,479,024 Non-Voting Shares of MP Western, representing approximately 99.87% of the outstanding Non-Voting Shares.

Madison acquired the shares of MP Western for investment purposes. Management of Madison is of the view that the recapitalization of MP Western will increase Madison's flexibility to raise capital for its portfolio of real estate assets.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Contact Information

  • Madison Pacific Properties Inc.
    Mr. Alan Firth
    President & CEO
    (604) 732-6540
    Madison Pacific Properties Inc.
    Mr. Thor Olsen
    Investor Information
    (604) 732-6540
    (604) 732-6550 (FAX)