Management company and real estate developments, announced today Closing a funding of 1 400 000 $ in the form of convertible debentures, reaching 65% of rentals in the building complex Lebourgneuf development and its intention to complete, subject to the following conditions complained: i) l acquisition of a commercial building at a cost of $ 2 537 500 and ii) the acquisition of land ownership commercial worth $ 837 000.
Debentures
The management of the Company is pleased to announce the completion of financing in the form of debentures announced last September 23. The convertible debentures with a term of 24 months offer an interest rate of 9% per annum to the holder, payable quarterly. The capital of such convertible debentures were offered at a price of $ 0.50 per share if converted in the 1st year of issue, or at a price of $ 0.55 per share if converted in the second year. Of the $ 1 400 000 $ $ 250 $ 000 remains to be cashed by the Company following the confirmation of it from a subscriber information related to its building in developing complex Lebourgneuf.
Purpose of rental achieved
Complex Lebourgneuf, developing the building is already leased over 65% as of September 30, 2009. This building of 235 000 square feet has welcomed its first tenants at the end of June 2009 and income from leases signed now sufficient to cover the debt service related to that property. "Demand in the City of Quebec for quality commercial premises and is supported Cagim demonstrates clearly be a leader in the Capital Region of the province," said Mr. Guy Boutin, CEO and Project Manager.
Commercial building
Management announced it has agreed on key conditions in order to acquire a commercial building located in the City of Saint-Augustin-de-Desmaures, Quebec, for a total of 2 537 500 $. This building houses a single tenant to AAA for a term covering the next 15 years. The purchase price represents a capitalization rate of 10%.
The proposed acquisition price will be payable in cash, the capital outlay of $ 100 000 and obtain mortgage financing of approximately 1 700 000 $, the balance will be payable in shares of the Company by the Issue of 1 400 000 shares at a price of $ 0.50 each, for a consideration of $ 700 000. This acquisition transaction involving a related party of the Company is subject to certain conditions including due diligence and successfully complete, obtaining an independent report conclusive evaluation, approval of the TSX and TSX any other regulatory authority requirements and finally, the finalization of a definitive purchase agreement. The management of the Company intends to complete this transaction during the 4th quarter.
Commercial Plot
The management of the Company also announced today to be in advanced talks to acquire a commercial land located in the Lebourgneuf Quebec City. The amount of the acquisition, subject to tax adjustments, is set at $ 837 000 and will be payable in cash. This transaction is part of strategic expansion plan of the Company and is subject to certain conditions including due diligence complete. This land is adjacent to the Complexe Lebourgneuf that the company has condominiums, and whose construction is almost complete. The President of the Company, Mr. Stéphane Beshro this transaction qualifies as "Complex Lebourgneuf is a tour de force and will become a success, including its high occupancy rate at this stage of the project. The acquisition of commercial land under by the tender offer is part of a second commercial project, relatively speaking, will be similar to the complex project. " The management of the Company feels confident that the expertise of the management team of the Company will contribute once more to the implementation of this future project. Cagim is listed on the TSX Venture Exchange and operates business management, development and acquisition. The Company operates its business through its subsidiaries ADG Immobilier inc. Complex and Lebourgneuf inc.
The TSX Venture Exchange and its service provider rules (within the meaning assigned to that term in the policies of the TSX Venture Exchange) assumes no responsibility for the adequacy or accuracy of this release.
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