All amounts are in US dollars unless otherwise
stated
TORONTO, Dec. 7, 2018 /CNW/ - Firm Capital American Realty
Partners Corp. (the "Company"), (TSXV: FCA.U), (TSXV: FCA)
is pleased to provide the following update regarding its 7.0%
Convertible Unsecured Debenture (the "Debenture") and Single
Family Homes Disposition Program:
OVER 90% OF CONVERTIBLE UNSECURED DEBENTURE HAS BEEN
REPAID
Due to a combination of working capital and single
family home sales as outlined below, the Company has repaid
$5.4 million owing on the Debenture
since the end of Q3/2018. As a result, the Company has repaid over
90% of the Debenture as the current balance stands at only
$1.4 million.
FULLY EXITS NEW JERSEY
SINGLE FAMILY HOME MARKET
The Company is pleased to announce
that it has closed a sale on its only remaining single family home
located in New Jersey for
$0.2 million, in line with the
Company's IFRS valuation as disclosed in the financial statements
and MD&A for the period ended September
30, 2018. As a result, the Company has no more single family
homes in its portfolio other than the ones as outlined below in
Atlanta.
73% OF ATLANTA SINGLE FAMILY
HOMES SOLD
As previously disclosed, the Company had listed
for sale its remaining 120 single family homes located in
Atlanta, Georgia. To date, the
Company has sold or closed sales on 87 homes, or 73% of the total
portfolio, for gross proceeds of $9.2
million ($8.5 million net of
estimated closing costs). Of these sales, all but four have
officially closed and those are expected to close during Q4/2018.
The remaining unsold 33 single family homes, which have a current
list price of $4.1 million
($3.8 million net of estimated
closing costs) are anticipated to generate on closing, assuming
that the current list price is achieved, net proceeds sufficient to
fully repay the existing Debenture and provide the Company with
additional working capital.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. is a U.S. focused real
estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing 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
responsibilities; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform in 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 the ability to do so for
consideration that accords with the estimated value of the
portfolio, as set out above) and ultimate debt repayments, the use
of proceeds from the new loan described above, the use of proceeds
from (and timing of) the disposition of the Company's portfolio of
single family homes located in Atlanta, 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,
debt repayments 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.