Business
Mainstreet's portfolio increases to 4,098 units with the acquisition of 359 units in Edmonton, Alberta. In addition, Mainstreet refinances mortgages with CMHC totaling $10 million at 4.66% for 10 years and disposes of a non-strategic asset for a gain of $600,000.
Mainstreet's portfolio increases to 4,098 units with the acquisition of 359 units in Edmonton, Alberta. In addition, Mainstreet refinances mortgages with CMHC totaling $10 million at 4.66% for 10 years and disposes of a non-strategic asset for a gain of $600,000..
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, April 11 /CNW/ - Mainstreet Equity Corp. (\"Mainstreet\" or the\n\"Corporation\") continues to execute its business plan of further strengthening\nits position in the \"mid-market\" rental apartment sector in Canada, and\nconsolidating its operations in four core markets - Vancouver/Lower Mainland\n(Surrey), British Columbia, Calgary and Edmonton, Alberta and Greater Toronto\nArea, Ontario.\nWith the acquisition of 359 units in Edmonton, Mainstreet's portfolio\nwill grow to almost 4,100 units. Of these new acquisitions, as of the second\nquarter ended March 31, 2006, Mainstreet had closed the purchases of 152\napartment units. Acquisitions of the remaining 207 units are expected to close\nat various times throughout the month of April 2006. These properties consist\nof 14 garden style walk-up apartments with in-place rents that are priced\nsignificantly below market rents, offering excellent potential for value\ncreation. They are clustered in close proximity to existing Mainstreet assets,\nwhich brings associated operating and cost efficiencies. The total acquisition\ncost of $16.6 million (approximately $46,000 per unit) was satisfied with\nfirst mortgages amounting to $13.6 million at an average short-term interest\nrate of 6.5%, with the balance paid in cash.\n\"These acquisitions are consistent with Mainstreet's strategy of\nacquiring mid-market rental properties with strong value-add potential,\" says\nBob Dhillon, President & CEO of Mainstreet. \"Properties are being acquired\nwell below replacement costs and market values and have in-place rents that\nare significantly below current market rents. This presents an opportunity for\nMainstreet to apply its proven \"Value Chain\" model to renovate the suites,\nincrease rents, stabilize occupancy, and refinance the properties to create\nhigher market value.\"\n\nMortgages refinanced at lower interest rates\nMainstreet also obtained approval from Canada Mortgage and Housing\nCorporation to refinance mortgages totaling $10 million at 5.22% interest\nrate, maturing in February 2007, to a lower interest rate of 4.66% for 10\nyears. The refinancing is expected to be complete by April 30, 2006, which\nwill realize additional funds of approximately $2.4 million. Mainstreet\nactively negotiates the refinancing of maturing debts which will enable the\nCorporatio...