Redex Inc.
TSX VENTURE : RDX

Redex Inc.

October 25, 2005 20:59 ET

Redex Inc.: Purchase of 755, Boulevard Montpellier, in St-Laurent

MONTREAL, QUEBEC--(CCNMatthews - Oct. 25, 2005) - Redex inc.(TSX VENTURE:RDX), a real estate management company located in the city of Montreal, is proud to announce the purchase, through a subsidiary, of the building located at 755, boulevard Montpellier, in St-Laurent, Quebec (the "Building"). The Building, of a rental area of 6,110.10 sq.m., has been acquired for the price of seventeen million dollars ($17,000,000) (the "Purchase Price"). The Purchase Price is financed by a hypothecary loan from Societe Financiere MCAP for an amount of thirteen million six hundred thousand dollars ($13,600,000), at the annual floating interest rate established on the bankers acceptances plus four hundred points per year. The Purchase Price is also financed by a participating loan of one year with a private lender, Mr. Jean-Guy Dumoulin, for an amount of five hundred thousand dollars ($500,000), bearing an annual interest rate of twelve and a half per cent (12.5%) and, in the case where a unit of the Building is sold as a divided or undivided co-ownership or cooperative, an amount equivalent to two and one half per cent (2.5%) of profits generated by the net sale, after all applicable taxes, of each unit shall be payable. Finally, the Purchase Price is also financed by a secured loan of one year with a private lender, Placements Fraine inc., for an amount of two million seven hundred thousand dollars ($2,700,000.00), carrying an annual interest rate of twelve and a half per cent (12.5%) and, in the case where a unit of the Building is sold as divided or undivided co-ownership or cooperative, an amount equivalent to sixteen per cent (16%) of profits generated by the net sale, after all applicable taxes, of each unit shall be payable.

Within the framework of this acquisition, a real estate brokerage commission of seventy-five thousand dollars ($75,000) is payable to 9063-0906 Quebec inc. (Services de courtage Lessard).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Redex Inc.
    Mr. Michel Piette
    President and Chief Executive Officer
    (514) 954-1551
    or
    Redex Inc.
    Mr. Guy Descoteaux
    Chief Financial Officer
    (514) 954-1551