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ISG Capital Corporation announces qualifying transaction
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./ TORONTO, May 1...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN\n\n\nTHE U.S./\n\n\nTORONTO, May 12 /CNW/ - ISG Capital Corporation (TSX-V: SUS.P) (the\n"Corporation"), a capital pool company listed on the TSX Venture Exchange (the\n"Exchange"), announced today that it has agreed to acquire a 200,615 square\nfoot distribution facility situated on approximately 20 acres of land in\nIngersoll, Ontario (the "QT Property") as its proposed qualifying transaction\n(the "Qualifying Transaction") under Exchange Policy 2.4 Capital Pool\nCompanies (the "CPC Policy").\n\n\nThe QT Property\n\n\nThe QT Property is 100% leased to Hercules Tire Company of Canada Inc.\nfor a period of 10 years expiring March 31, 2017. The lease is indemnified by\nthe U.S. parent Hercules Tire & Rubber Company. The site is located directly\nnorth of Highway 401, across from the 1.6 million square foot CAMI automotive\nproduction facility. CAMI is a joint venture between Suzuki Motor Corporation\nand General Motors of Canada. Toyota's new Woodstock plant, a $1.1 billion\nenvironmentally friendly production facility, is scheduled to open in 2008. It\nwill be only 15 kilometres away. The QT Property has lot coverage of only 23%\nwhich offers the possibility of significant future expansion of the\ndistribution facility or re-development of the site\n\n\nThe QT Property is currently subject to a first mortgage in the principal\namount of $7,045,000 that bears interest at a rate of 6.14% per annum\n(interest only until August 2009) and has a term expiring in 2014 (the\n"Existing Mortgage"). The Corporation intends to assume this mortgage as part\nof its acquisition of the QT Property.\n\n\nRevenue and net income for the QT Property were $763,857 and $104,147\n(366 day period ended March 31, 2008 - audited), $712,176 and $351,068 (364\nday period ended March 31, 2007 - unaudited) and $654,173 and $430,467 (year\nended March 31, 2006 - unaudited). As at March 31, 2008, the QT Property had\ntotal assets of $7,958,139 and total liabilities of $7,049,023.\n\n\nThe Corporation retained Altus Group Limited (the "Appraiser") to provide\nan independent appraisal (the "Appraisal") of the market value of the QT\nProperty. The Appraiser estimated the market value of the QT Propert...