NEW YORK, Dec. 20, 2019 /PRNewswire/ -- Suneet Singal,
CEO of First Capital Master Advisor and Former Chairman and CEO of
First Capital Real Estate Trust, Inc., announces successful
$350 Million real estate acquisition
by FTE Networks, Inc. and a $100
Million stock distribution to the common shareholders of
First Capital Real Estate Trust, Inc.
FTE Networks, Inc. (NYSE American: FTNW) ("FTE"), announced
that it has signed a definitive agreement and has acquired the
assets of Vision Property Management LLC ("Vision") and its
affiliated assets which include more than 3,000 residential real
estate assets in 46 states.
First Capital Master Advisor was instrumental in advising Vision
with the transaction. The purchase price for Vision is
approximately $350 million. The
consideration includes a distribution of common and preferred stock
of FTE valued at approximately $100M
to the shareholders of First Capital Real Estate Trust Inc, a
non-traded public REIT, at the direction and personal election of
its former Chairman & CEO Suneet
Singal. Any such distribution will be subject to a
registration under the Securities Act of 1933 or an applicable
exemption from registration.
Committed to providing accretive investment opportunities to the
retail investment channel, Suneet
Singal had previously pledged assets worth $175M to First Capital Real Estate Trust Inc.
(Formerly, United Realty Trust Incorporated) and acquired the
external advisor to the REIT in September
2015. The $100M distribution
to the common shareholders translates into a $20.00 per share exit, a gain over their original
pricing paid of $10.45 per share and
$12.49 per share. This exit pricing
represents the one of the highest returns provided in the retail
independent broker dealer channel alternative investment space
since the last decade.
"I'm pleased with the outcome of providing a successful exit to
the retail common shareholders representative of the
multi-billion-dollar independent broker dealer channel. We
look forward to supporting the growth of the newly transformed
company as shareholders," said Suneet
Singal.
Vision's management team assembled its portfolio of houses over
the past 10 years and will continue as senior executives of the
Company and major shareholders. They will develop their strategy to
acquire and build affordable housing properties for sale or for
rent. FTE has assumed approximately $75MM in debt held by Vision it
plans to refinance into a new lower cost credit facility including
additional renovation capital allowing for the ability to capture
additional revenue within the portfolio.
"We pride ourselves as experts in the residential real estate
business in secondary markets around the US bringing home ownership
and affordable for rent product to the middle and lower income
class," said Vision CEO Alex
Szkaradek. "Contributing our assets into FTE and structuring
them into a residential real estate investment trust gives us the
opportunity to scale our platform and allow investors the
opportunity to participate in this under-represented investment
class in the public markets. We are thrilled as to this
strategic partnership and look forward to delivering future
shareholder results."
Media Contact: Zar
Aamer, z.aamer@firstcapitalre.com
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SOURCE First Capital Master Advisor