Urbanfund Corp.
TSX VENTURE : UFC

February 21, 2007 09:17 ET

Urbanfund Corp. Announces Proposed Sale Transaction

TORONTO, ONTARIO--(CCNMatthews - Feb. 21, 2007) - Mitchell Cohen, President of Urbanfund Corp. ("Urbanfund" or "the Corporation") (TSX VENTURE:UFC), announced today that Westdale Construction Co. Limited ("Westdale") entered into an agreement with an arm's length third party (the "Purchaser") whereby the Purchaser has offered to purchase the property known municipally as 790-800 Richmond Street West (the "Property"). The property is comprised of a 556 residential unit twin-tower apartment complex located on Richmond Street, West of Bathurst Street The aggregate purchase price for the Property is anticipated to be CDN$59,600,000. Urbanfund holds a 10% undivided interest in the Property.

In 2003, the Corporation entered into a joint venture with Westdale and acquired its 10% undivided interest in the Property. To date, as it relates to the Property, Urbanfund has been responsible for its proportionate share of: (i) the costs associated with redevelopment of the Property; (ii) an assumed mortgage in the principal amount of $14,000,000; (iii) a construction line in the principal amount of $9,500,000 and related loans; and (iv) property management fees. Mr. Ronald S. Kimel, the Chairman and Chief Executive Officer of Urbanfund, is the principal shareholder of Westdale.

Closing of the Proposed Transaction is subject to, among other things, the execution of definitive documentation by the parties, completion by the Purchaser of its due diligence investigations (within thirty (30) days), and approval of the Proposed Transaction by Urbanfund's board of directors. Urbanfund's board of directors will be evaluating its alternatives with respect to the Proposed Transaction.

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

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend", "may", "will", "should", "could", "anticipate", "believe", "plan", "estimate", "potential", "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the Corporation's continuous disclosure documents filed with the Ontario Securities Commission and other regulatory authorities at www.sedar.com. Actual results may differ materially from those currently anticipated. The Corporation has no intention or obligation to update or revise any forward-looking statements, 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
    (416) 361-5000
    or
    Urbanfund Corp.
    Steve Isenberg
    Director
    (416) 603-4343