Urbanfund Corp. Announces Acquisition of Interest in Signature Redevelopment Site at Yonge & Bloor
TORONTO, ONTARIO--(Marketwire - Sept. 16, 2009) - Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE:UFC) (the "Company"), announced today that the Company completed the acquisition of an interest in the high density residential/commercial re-development site located at the southeast corner of Yonge and Bloor Streets in Toronto, Ontario (the "Property").
Urbanfund invested alongside Westdale Construction Co. Limited ("Westdale"), Urbanfund's largest shareholder, to form Bloor East Holdings Inc., which holds a 33.33% in the Property. Urbanfund purchased a 10% interest in Bloor East Holdings Inc., resulting in Urbanfund indirectly holding an approximately 3.33% interest in the Property.
"The Property is arguably one of the best mixed-use sites available in Canada today and we moved quickly to be part of this acquisition" said Mitchell Cohen. "To hold an interest in a signature project of this size and magnitude at the crossroads of the Bloor and Yonge subway lines is a strategic acquisition for Urbanfund; and we will continue to look for more of these transactions. Our relationship with Westdale provided us with access to this investment opportunity. Without Westdale's prominence in the real estate market, such an opportunity may not have presented itself to Urbanfund".
This 50,400 square foot vacant development site was previously slated to be the 80 storey "One Bloor Street East" condominium site that saw prospective purchasers of condominiums line up for weeks to own a piece of this corner. "With land prices down dramatically, we viewed the opportunity to have Urbanfund involved in the re-design and re-marketing of the site as an opportunistic transaction" said Cohen.
Distinguished home and condominium builder, Great Gulf Homes, will be the developer of the Property. More information on Great Gulf Homes can be found at www.greatgulfhomes.com.
On closing, Urbanfund advanced its pro rata portion of the purchase price and anticipated pro rata portion of closing and pre-development costs, in the aggregate amount of $2,000,000, which was funded out of the Company's cash on hand.
Urbanfund Corp. is a Toronto-based real estate development and operating company. The Company's common shares trade under the symbol UFC on the TSX Venture Exchange. Urbanfund's focus is to identify, evaluate and invest in real estate and real estate related projects. The Company's assets are located in Toronto, Belleville and London, Ontario. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.