Firm Capital American Realty Partners Corp. Announces $4 Million of Additional Capital Availability to Fund Future Growth
December 06, 2017 --
All amounts are in US dollars unless otherwise stated
TORONTO, Dec. 06, 2017 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Corp. (the “Company”) (TSXV:FCA.U) (TSXV:FCA) is pleased to announce that it has accepted from the first mortgage lender on its multi-family residential investment property located in Sunrise, Florida (the “Property”) a conditional proposal to provide a supplemental first mortgage loan on the Property (the “Supplemental Loan”) in the gross amount of approximately $4 million, with a fixed interest rate based on the 5-year U.S. Treasury plus a spread of 325 basis points (approximately 5.4% as of today’s date), a term to maturity of approximately 4.75 years and co-terminus with the existing first mortgage loan (the “Existing Loan”), and an amortization period of 30 years. The Company anticipates that this Supplemental Loan will close in the first quarter of 2018.
As at September 30, 2017, the pro forma weighted average fixed interest rate for the Existing Loan and the Supplemental Loan would have been approximately 4.3%. Based on the Company’s carrying value for the Property as at September 30, 2017, the Existing Loan represented a loan-to-value (“LTV”) of approximately 34.5% and pro forma for the Supplemental Loan, the LTV would have been approximately 51.8%.
The Company will use the anticipated net cash proceeds from the Supplemental Loan to fund prospective acquisitions of income producing multi-family residential properties in the U.S. primarily in joint venture partnerships, to fund prospective investments in mortgage debt on real estate properties in the U.S., for the repayment of corporate debt, for working capital, and for general corporate purposes.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
The Company is a U.S. focused real estate investment company focused 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 U.S. Acquisitions are completed by the Company primarily in joint-venture partnerships 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 U.S., 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, 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.
For further information, please contact:
|Kursat Kacira||Sandy Poklar|
|President & Chief Executive Officer||Chief Financial Officer|
|(416) 635-0221||(416) 635-0221|