REALnorth Opportunities Fund announces a joint venture to develop industrial property in Fort St. John, British Columbia
VANCOUVER, Sept. 10, 2015 /CNW/ - REALnorth Opportunities Fund ("REALnorth") announced today that one of its subsidiaries has entered into a new joint venture with a Vancouver-based property group to develop approximately 17 acres of industrial property (the "Property") in the northeast portion of Fort St. John, British Columbia near the regional airport. The Property has been acquired from a third party vendor and is comprised of four lots. Each lot is accessible by rail, with city servicing readily available.
Under the joint venture, REALnorth contributed equity of approximately $3.1 million and will receive 50% of any profits from development of the Property. Pre-development work such as grading and pre-loading is already underway. Conventional construction mortgage financing is expected to be used for developing these lots with either build-to-suit options or lay-down yards for industrial users depending upon the market demands.
As the largest city within British Columbia's Peace River Region and being approximately 200 kilometres west of Grande Prairie, Fort St. John is an important commercial centre for Western Canada's oil and gas industry. Located at mile 47 on the Alaska Highway (Highway 97), the city is within an hour's driving time from the Montney formation and within several hours' driving time from the Horn River Basin. Aside from various oil and gas projects, the completion of the new Fort St. John hospital in 2012 and the Province's recent approval of the nearby Site C Dam are contributing to the city's reputation as an economic hub for northeastern British Columbia. Given the confluence of announced and proposed major projects in the region, management believes the city's need for industrial lands is likely to continue to grow at a rate above the national average.
About REALnorth Opportunities Fund
REALnorth exclusively focuses on Western Canada's north, a region bolstered by rich resources and large projects, to invest on an opportunistic basis in revenue producing real estate assets and development properties which management believes will provide attractive return potential. These properties may include industrial and commercial as well as multi-family and other residential real estate opportunities.
Additional information relating to REALnorth is available on SEDAR at www.sedar.com.
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects REALnorth's current expectations regarding future events. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and similar terms and phrases. In particular, forward-looking statements in this news release include, but are not limited to, statements regarding: the expectation of developing the Property, the expected percentage of profit from the development of the Property and the use of conventional construction mortgage financing to service the lots comprising the Property. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond REALnorth's control, that could cause actual results and events to differ materially from those that are disclosed in, or implied by, such forward-looking information. Such assumptions include, but are not limited to, a reasonably stable North American economy and real property market. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in REALnorth's final prospectus dated December 22, 2014 and under "Risk and Uncertainties" in its Management's Discussion and Analysis dated August 31, 2015. The forward-looking information contained herein is made as of the date of this news release and, except as expressly required by applicable law, REALnorth assumes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
SOURCE REALnorth Opportunities Fund
Stephen J. Evans (Chair), REALnorth Opportunities Fund, Suite 910 - 925 West Georgia Street, Vancouver, BC V6C 3L2, Tel: (604) 681-5959; Brian R. Canfield (CEO), REALnorth Opportunities Fund, Suite 910 - 925 West Georgia Street, Vancouver, BC V6C 3L2, Tel: (604) 240-3718Copyright CNW Group 2015
Source: Canada Newswire
(September 10, 2015 - 8:21 PM EDT)
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