Prestigious Properties Canada Ltd

Prestigious Properties Canada Ltd

January 11, 2011 11:53 ET

Prestigious Properties Announces $14.65 Million Acquisition in Calgary, AB - Exceeding $90 Million in Assets Owned

CANMORE, ALBERTA, CALGARY, ALBERTA & VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 11, 2011) - Prestigious Properties Group (www.prestprop.com) is pleased to announce the acquisition of Castleview Park Apartments, a 120-unit apartment building in Calgary, Alberta. The purchase of this asset, in Calgary's expanding NE quadrant, grows the group's holdings to over $90 million in assets. Since its inception in 2000, Prestigious Properties' portfolio has expanded to over 1200 units, of which over 40% are in Alberta.

A rising player in the North American rental real estate market, Prestigious Properties has developed a highly successful investment strategy which has drawn an enthusiastic response from over 500 satisfied investors who have invested more than $40 million. In a nutshell, Prestigious Properties acquires and manages undervalued apartment buildings in Western Canadian urban markets that have historically realized strong risk adjusted returns.

"The average rent in Castleview is ten percent below CMHC's fall 2010 survey of market rents for NE Calgary. Therefore, we anticipate both short and medium term rental upside", states Mike Hammerlindl, VP Acquisitions of the Prestigious Properties Group. He adds: "After sitting on the acquisition sideline in Alberta for well over three years due to excessive prices, we've decided to enter the Calgary market. According to a recent research report by the Real Estate Investment Network (REIN), Calgary is the #1 city for real estate investment not only in Alberta, but for all of Canada."

Company president Thomas Beyer is bullish on the company's business model and pleased by its surging growth profile. "In any economy, and especially in a volatile environment like right now, there is a need for reasonably priced, well situated and appropriately renovated apartments," Beyer explains his investment philosophy. "Renting is becoming the economic choice of many because owning a house doesn't mean automatic equity accumulation anymore, because renting is usually far cheaper than owning and because the threat of rising interest rates remains with us," he adds. "This presents an enormous opportunity for investors who seek stable, long term investments with cash-flow and equity growth, whether the economy is strong or weak."

Prestigious Properties has also forged strong business relationships with a number of Canadian banks and lending institutions. This property was financed with a loan of slightly over $10M provided by TD Bank at very attractive terms.

Scotty Grubb, Senior VP for Prestigious Properties, adds: "Tightening credit requirements, in addition to higher down payments, translate to stronger demand for rental accommodation, rising rents and lower vacancies. We can currently buy apartment buildings for significantly less than replacement costs, with relatively predictable rental growth and with very inexpensive financing. This represents an enormous opportunity for us and our co-investors."

Prestigious Properties is a privately owned, Alberta-based group of companies which create wealth for investors by offering well selected real estate investments that provide positive cash flow, tax free equity growth, and hassle-free management, for the benefit of tenants, communities and investors.

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