Edgefront Realty Corp. announces agreement to purchase Ontario properties, proposed private placement and REIT conversion

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 1, 2013 /CNW/ - Edgefront Realty Corp. (\"Edgefront\") (TSXV: ED) announces today that it has entered into an agreement with\n Ajax Estates Holdings Ltd. (an Ontario corporation) dated April 29,\n 2013 to purchase a 396,000 square foot portfolio of industrial\n properties in Ajax, Ontario (the \"Ajax Portfolio\") for a purchase price of approximately $29,500,000, to be satisfied by\n way of cash and the issuance to Ajax Estates Holdings Ltd. of\n $5,000,000 of Edgefront shares at a deemed price of $0.15 per share (or\n approximately 33,333,333 Edgefront shares). The Ajax Portfolio consists\n of multiple multi-tenant industrial properties located in an industrial\n park that is 100% occupied with an average remaining lease term of 7\n years.\n\n\nThe purchase price for the Ajax Portfolio will be satisfied through a\n combination of cash generated from new mortgages, the issuance of up to\n 300,000,000 common shares of Edgefront by way of private placement at a\n price of $0.15 per share for aggregate gross proceeds of up to $45\n million and the share issuance to Ajax Estates Holdings Ltd. as\n described above. The acquisition of the Ajax Portfolio and the private\n placement will form part of a series of transactions relating to the\n conversion of Edgefront into a real estate investment trust having an\n external asset management structure. The acquisition of the Ajax\n Portfolio, private placement and conversion into a real estate\n investment trust will be subject to receipt of all necessary approvals,\n including those of Edgefront shareholders, the Ontario Superior Court\n of Justice (Commercial List) and the Exchange, and such transactions\n are expected to close on or about the end of June. \n\n\nEdgefront retained CBRE Limited as its independent appraiser to\n determine the market value of the Ajax Portfolio. In its report, the\n independent appraiser concluded that the market value of the Ajax\n Portfolio as at April 25, 2013 was $29,900,000 based on various factors\n including annual total gross revenue of $3,071,513 (unaudited) for the\n portfolio.\n\n\nThe acquisition of the Ajax Portfolio is an Arm's Length Transaction (as\n that term is defined in TSXV Policy 1.1) and has not yet received TSXV\n approval.  The acquisition is subject to certain closing conditions,\n including completion...

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