All amounts are in US dollars unless otherwise stated
TORONTO, Dec. 18, 2017 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Corp. (the “Company”) (TSXV:FCA.U) (TSXV:FCA) is pleased to announce that it has closed a participation of $2.5 million in a $12.0 million preferred capital loan (the “Preferred Capital”) originated by an entity affiliated with the Company to fund the acquisition by a New York based real estate investment firm (the “Sponsor”) of a portfolio of three apartment buildings in Manhattan, New York (the “Portfolio”).
The Preferred Capital earns an interest rate of 12% per annum during its initial term of three years and, if the term is extended by the Sponsor for a further two years, at an interest rate thereafter that is the greater of 13% or LIBOR plus 10% per annum. Payments on the Preferred Capital are interest only and are payable monthly. The Preferred Capital may be repaid by the Sponsor prior to maturity in whole or in part upon 30 days prior written notice. The Company’s participation in the Preferred Capital was funded from cash on hand.
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.
Additional information about the Company is available at www.firmcapital.com or www.sedar.com.
For further information, please contact:
Kursat Kacira
President & Chief Executive Officer
(416) 635-0221
Sandy Poklar
Chief Financial Officer
(416) 635-0221