Urbanfund Corp.

April 16, 2008 12:28 ET

Urbanfund Corp. Announces Mortgage Financing

TORONTO, ONTARIO--(Marketwire - April 16, 2008) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC), is pleased to announce that it has obtained a mortgage commitment and has agreed to pursue mortgage financing for its two (2) recently- acquired retail assets; North Front Centre in Belleville, Ontario and Wonderland Mall in London, Ontario.

The mortgage financing, to be provided by a large Canadian financial institution, is in the amount of $6,500,000 and shall be for a term of 5 years with an expected fixed interest rate of 5.75%. The mortgage financing is scheduled to close in late May 2008.

The funds raised from the mortgage financing, net of transaction costs will be used to retire an existing $1,000,000 Blanket First Mortgage and to evaluate and pursue further property acquisitions.

Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. The Company's common shares trade under the symbol UFC.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to statements concerning Urbanfund's objectives, its strategies to achieve those objectives, as well as general statements with respect to management's beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on management's estimates and assumptions that are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in Urbanfund's Management's Discussion and Analysis ("MD&A") available at www.sedar.com, which could cause actual results to differ materially from the forward-looking statements contained herein. Those risks and uncertainties include risks associated with real property ownership, acquisition financing and interest rates. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: interest costs to Urbanfund remaining relatively stable and equity and debt capital markets will continue to provide access to capital to fund at acceptable costs Urbanfund's future growth program and refinance Urbanfund's debt obligations as they mature. Although the forward-looking information contained herein is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this MD&A are qualified by these cautionary statements. Except as required by applicable law, Urbanfund undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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

Contact Information

  • Urbanfund Corp.
    Mitchell Cohen
    President & Chief Executive Officer
    (416) 703-7365
    Email: mcohen@urbanfund.ca
    Urbanfund Corp.
    Steve Isenberg
    (416) 603-4343