All amounts are in $US Dollars unless otherwise
stated
TORONTO, Feb. 27, 2017 /CNW/ - Firm Capital American
Realty Partners Corp. (the "Company"), (TSXV : FCA.U) is
pleased to announce the appointment of Kursat Kacira as President,
Chief Executive Officer and a Director of the Company. In addition,
the Company is pleased to announce the repayment of approximately
$0.5 million of the Senior Secured
Notes ("SSN") and provides an update on its remaining single
family home inventory and current investment portfolio.
NEW PRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTOR
Effective immediately, Kursat Kacira is the new Chief Executive
Officer and a Director of the Company. Kursat is currently the
Chief Executive Officer and Trustee of Maplewood International REIT
("Maplewood") (TSXV:
MWI.UN), which he founded in 2013, and continues to serve in those
capacities as Maplewood progresses
with its value maximization process. Kursat is an accomplished
professional with 25 years of experience in financial management,
real estate investment, international business, investment banking,
and public accounting, in Canada,
the United States, and
Europe. Previously, Kursat was
Chief Financial Officer of TSX-listed Whiterock REIT, which was
sold for C$1.4 billion in 2012. Prior
to that, Kursat had a long-standing career in investment banking at
TD Securities Inc. in Toronto and
Bear, Stearns & Co. Inc. in New
York, as well as in public accounting at Price Waterhouse in
Toronto. Kursat is a Chartered
Professional Accountant (CPA, CA), has a Master of Business
Administration (Dean's Scholarship Recipient) from the Stern
School of Business at New York
University, and a Bachelor of Mathematics (Honours) from the
University of Waterloo.
As a result of this appointment, Robert
McKee will be stepping down as Interim President and Interim
Chief Executive Officer of the Company effective immediately. The
Company wishes to thank Robert for his service to the Company.
The Company's Manager, Firm Capital Realty Partners Advisors
Inc. (Firm Capital Organization), has the authority to appoint the
Chief Executive Officer of the Company, but this appointment is
subject to final approval of the Board of Directors of the Company.
In addition to his role with the Company, Kursat is also the
Managing Director and Co-Head of Special Situation Investments with
the Firm Capital Organization.
DEBT REPAYMENT UPDATE
The Company is also pleased to
report that from the period from February 1,
2017 through to February 24,
2017, that it has closed on 10 single family home sales
located in Florida and
Atlanta for total gross proceeds
of approximately $0.6 million and net
proceeds of approximately $0.5
million. The variance between gross and net proceeds of just
under $0.1 million is attributed to
closing costs which include, but are not limited to selling
commissions, legal and title document closing costs. The net
proceeds from these single-family homes sales were used to make a
$0.5 million SSN repayment. The
annual interest expense savings from this debt repayment is
approximately $0.04 million.
With this repayment, the current SSN and First Mortgage New
Jersey Promissory Note ("NJPN") balances stand at
approximately $6.0 million and
$2.4 million, respectively. Overall,
the Company has repaid approximately $20
million or 70% of the original SSN and NJPN balances.
The Company believes that the continuing sale of the
single-family home portfolio accompanied by the pay down of debt
strengthens its balance sheet while increasing operating income by
eliminating the costs associated with operations of the
single-family homes.
SINGLE FAMILY HOME INVENTORY HELD FOR SALE UPDATE
In
addition to closed home sales, the Company has under contract 43
single family homes located in South
Florida, Tampa,
New Jersey and Atlanta for net proceeds of approximately
$3.8 million. These home sales are
anticipated to close during the first and second quarter of 2017
and the net proceeds generated will be used for further repayment
of the SSN and NJPN. Beyond these conditional home sales, the
Company currently has five homes in South
Florida, 21 homes in New
Jersey, 21 homes in Tampa
and 231 homes in Atlanta. 120 of
the Atlanta homes are part of a
rental pool secured by a $4.0 million
first mortgage due July 1, 2019 and
111 homes are currently being marketed for sale. With the exception
of the 120 single family homes as outlined above, all of the
remaining inventory across the Company's portfolio are currently
held for sale.
CURRENT INVESTMENT PORTFOLIO UPDATE
Beyond the single
family home inventory as outlined above, the Company's investment
portfolio consists of six wholly-owned multi-family investment
properties located in Florida
(four properties) and Texas (two
properties) comprised of 377 units with a 97% weighted average
occupancy rate and two multi-family joint venture investments
located in New York City and
Maryland comprised of 242 units
with a 92% weighted average occupancy rate.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. focuses on capital
partnership investing in U.S. income producing real estate &
mortgage debt investments.
The Company is focused on the following investment
platforms:
- Income Producing Real Estate Investments: Acquiring
income producing U.S. real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture partnership
with local industry expert partners who retain property management;
and
- Mortgage Debt Investments: Real estate debt and equity
lending platform focused on major cities across the United States. Focused on providing all
forms of bridge mortgage loans and joint venture capital.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Certain information in this news release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions. Forward-looking
statements in this news release include, but are not limited to,
statements with respect to the Company's intention to complete the
sale of its single-family homes and ultimate debt repayments,
potential capital financing and growth opportunities, as well as
the Company's intention to acquire income producing U.S. real
estate assets and complete joint venture partnerships and mortgage
debt and equity lending investments. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse factors affecting the U.S. real estate market generally or
those specific markets in which the Company holds properties;
volatility of real estate prices; inability to complete the
Company's single family property disposition program or debt
restructuring in a timely manner; inability to access sufficient
capital from internal and external sources, and/or inability to
access sufficient capital on favourable terms; industry and
government regulation; changes in legislation, income tax and
regulatory matters; the ability of the Company to implement its
business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Company's public disclosure documents on SEDAR at
www.sedar.com.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward- looking statements contained in this news release are
expressly qualified by this cautionary statement.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Additional information about the Company is available at
www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Corp.