TORONTO, ONTARIO -- (Marketwired) -- 01/22/15 -- CHC Realty Capital Corp. ("CHC" or the "Company") (TSX VENTURE: CHC) is pleased to announce that it has entered into an arm's length agreement dated as of January 15, 2015 to acquire a student housing property located at 2 Taylorwood Road in Oshawa, Ontario next to the University of Ontario Institute of Technology and Durham College. The property consists of four 4-storey stacked townhouse buildings with 260 beds in 59 units having a mix of 3 and 5 bedroom units which were newly built in 2014 by Podium Developments. At present, the buildings are 100% leased.
The purchase price for the property is $23.5 million, subject to adjustments and excluding acquisition costs. CHC has paid the vendor $750,000 in non-refundable deposits in respect of the acquisition (except in the event of a default by the vendor). It is expected that closing will occur in the second quarter of 2015. Financing and additional details regarding the acquisition will be provided in due course as the transaction progresses.
The acquisition is subject to the approval of the TSX Venture Exchange.
About CHC Realty Capital Corp.
CHC Realty Capital Corp. is an owner and operator of student housing properties which is focused on acquiring high quality properties in close proximity to universities and colleges in primary and well understood secondary markets in Canada.
Cautions Regarding Future Plans and Forward-Looking Information
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the proposed transaction and the business strategies of CHC. Although CHC believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. CHC cautions investors that any forward-looking information provided by CHC is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to: CHC's ability to complete the proposed transaction; the state of the real estate sector in the event the proposed transaction is completed; recent market volatility; CHC's ability to secure the necessary mortgage and equity financing or to be fully able to implement its business strategies; and other risks and factors that CHC is unaware of at this time. The reader is referred to CHC's initial public offering prospectus and other continuous disclosure documents for a more complete discussion of risk factors relating to CHC and their potential effects, copies of which may be accessed through CHC's profile on SEDAR at www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Mark Hansen, President and Chief Executive Officer
CHC Realty Capital Corp.
Telephone: (647) 288-9355
Email: mhansen@chcrealty.ca
Robert Waxman, Chief Financial Officer
CHC Realty Capital Corp.
Telephone: (647) 288-9375
Email: rwaxman@chcrealty.ca
