ISG Completes Sale of Ingersoll Distribution Facility

About this update from Firm Capital Property Trust

[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Nov. 6, 2012 /CNW/ - ISG Capital Corporation (TSXV: SUS \"ISG\") announced today that it has closed the previously announced sale of\n its sole real estate asset, an industrial distribution facility at 311\n Ingersoll Road in Ingersoll, Ontario (the \"Property\").\n\n\nThe sale price of the Property was $10,532,250, which represented a\n going-in yield on in-place net operating income of approximately 8%.\n The sale price was then subject to a mortgage interest rate buy-down of\n $250,000 resulting in a net purchase price of $10,282,250, before\n closing adjustments.\n\n\nISG remains focused on the previously announced plan of arrangement to\n effectively convert ISG into a new real estate investment trust (REIT)\n with members of the Firm Capital group of companies (\"Firm Capital\")\n providing asset, property and executive management services (the \"Plan\n of Arrangement\").  ISG expects the Plan of Arrangement to be completed\n in fourth quarter of 2012.\n\n\nThe sale of the Property was approved by 100% of the votes cast at an\n Annual and Special Meeting of Shareholders held on October 29, 2012.\n\n\n\"I am very pleased with the 21% internal rate of return realized on the\n Property. The sale of the Property is consistent with the plan Firm\n Capital proposes for the new REIT.  I am excited about the go forward\n strategy with Firm Capital\", noted David Ogden, ISG's President and\n C.E.O.\n\n\nA third party consultant verified the Corporation's IRR on the Ingersoll\n Property from the date of acquisition in February of 2009 to the sale\n on November 6, 2012.  The increase in value and operating gains\n achieved from ISG's energy saving initiatives combined to produce the\n attractive IRR.\n\n\nAbout ISG\n\n\nISG is a publicly-traded commercial real-estate company (www.isgcapital.ca).  The company is committed to creating shareholder value by incorporating\n environmentally and socially responsible approaches in its growth\n strategy.  \n\n\nReader Advisory\n\n\nThis news release contains \"forward-looking statements\" within the\n meaning of applicable securities laws, including those relating to the\n Plan of Arrangement, the anticipated cash redemption amount thereunder,\n the expected sale of the Ingersoll Property and the proposed listing of\n FCPT units on the TSXV. ...

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