URBANFUND CORP. URBANFUND CORP. ANNOUNCES CLOSING OF A JOINT VENTURE TO ACQUIRE 40%INTEREST IN ETOBICOKE INDUSTRIAL COMPLEX
January 24, 2022 – For Immediate Release
Toronto, Ontario – Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX Venture: “UFC”) (“Urbanfund” or, the “Company”), announced today that Urbanfund formed a joint venture, which acquired an industrial complex located at 67-69 Westmore Drive in Etobicoke, Ontario near the intersection of Highway 27 and Finch Avenue West. The joint venture intends to renovate, change to condominium title and sell units in the complex.
The complex is comprised of two industrial buildings, aggregating 99,000 square feet, and was acquired for a purchase price of $24.0 million, subject to customary adjustments. The property has 18 units and is currently 100% occupied.
The Company will hold a 40% interest and its joint venture partners, Takol Real Estate Inc. and a private real estate investor, will hold the remainder. The Company invested $3.12 million and the other partners invested $4.68 million in the aggregate (inclusive of purchase price deposits) with the remainder of the purchase price and funds to renovate the property provided by a financial institution at a current rate of 3.70% per annum.
“We are very excited to be once working with Takol”, noted Mitchell Cohen. “The template that we have developed for renovating and selling industrial units primarily to users, is gaining traction in the marketplace. We are pleased to once again be part of this opportunity especially as the industrial asset class continues to get stronger”.
The existing rent roll allows for the renovation and turnover of units into condominiums while still collecting rental revenue from the tenants whose leases have term left. The purchase, which equates to approximately $312 per square foot while sales are expected to be in the range of $360 per square foot. Completion of the project is projected to take approximately 30 months.
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