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Parkit Announces Completion of Sale of JV Asset
Parkit Announces Completion of Sale of JV Asset Canada NewsWire VANCOUVER, Oct. ...
About this update from Parkit Enterprise Inc.
[{"type":"text","content":"\n\n\n\nParkit Announces Completion of Sale of JV Asset\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Oct. 9, 2018\n\n\n\nVANCOUVER, Oct. 9, 2018 /CNW/ - Parkit Enterprise Inc. (\"Parkit\" or the \"Company\") (TSXV: PKT; OTCQX: PKTEF) announces that its previously disclosed (see press release dated October 4, 2018) sale of one of the single purpose entities held by OP Holdings JV LLC (the \"Joint Venture\") (a joint venture in which Parkit has an equity interest) has closed.  The single purpose entity owned the Expresso Airport Parking property and was acquired by the Joint Venture in 2015 (consisting of an equity investment of US $7 million), and was sold for approximately US $36.1 million.  When including the income received from the property over the period of the investment, the sale should represent an estimated levered IRR of approximately 42% to the Joint Venture.  \n\n \n \n\n \nThe sale will contribute to paying down the bulk of the 15% IRR hurdle owed to the majority member of the Joint Venture.  As a result, the Company expects that the sale will accelerate the cash flows that the Company receives from the Joint Venture.  As per the Joint Venture agreement, once the 15% IRR hurdle is repaid to the majority member, all cash flows from refinancing and asset sales are to be directed towards the PAV Member, a company co-owned by Parkit, until the PAV Member has received a 15% IRR.  The company will not receive any of the proceeds from the sale of Expresso.  For further information on the Company's interest in the Joint Venture please see the Company's financial statements and related management's discussion and analysis for the year ended October 31, 2017 and the six month period ended July 31, 2018 available under the Company's profile on www.sedar.com. \nThe sale was an arm's length transaction and did not involve any related parties as such term is defined in Multilateral Instrument 61-101 or TSX Venture Exchange policies.  The Company treated the transaction as an exempt transaction for th...