EDMONTON, July 15 /CNW/ - The Company announces the sale of Crowfoot West Business Centre, a recently completed 113,500 sq. ft. office building in northwest Calgary, Alberta. The transaction closed on July 15, 2008 at a sale price of $49,675,000.00 to an institutional buyer.
The Company made the strategic decision to sell this attractive income property to reduce debt levels, generate earnings, enhance the Company's cash position and redeploy capital to other strategic opportunities. Melcor continues its planned objective to create value for shareholders through the development of income producing properties.
The sale of this asset will generate a material gain of approximately $0.60 per share and will be included in the third quarter financial results of the Company. The earnings are expected to support the Company's financial results in a year of reduced residential land sales as residential markets adjust from the overheated conditions of the prior two years.
The Company is expected to release second quarter earnings at the close of markets on July 30, 2008.
www.melcor.ca