- Urbanfund Corp. (UFC) closes its joint venture to acquire 40 per cent interest in Etobicoke industrial complex
- The joint venture intends to renovate, change to condominium title and sell units in the complex
- The complex is comprised of two industrial buildings, aggregating 99,000 square feet, and was acquired for a purchase price of $24.0 million
- The property has 18 units and is currently 100 per cent occupied
- The existing rent roll allows for the renovation and turnover of units into condominiums while still collecting rental revenue from the tenants whose leases have term left
- Urbanfund (UFC) is sitting at C$1.15 at 2:42 pm EST
Urbanfund (UFC) through a joint venture, has acquired an industrial complex located in Etobicoke, Ontario.
The complex is located near the intersection of Highway 27 and Finch Avenue West.
The joint venture intends to renovate, change to condominium title, and sell units in the complex.
The complex is comprised of two industrial buildings, aggregating 99,000 square feet, and was acquired for a purchase price of $24.0 million, subject to customary adjustments.
The property has 18 units and is currently 100 per cent occupied.
Urbanfund will hold a 40 per cent interest and its joint venture partners, Takol Real Estate Inc. and a private real estate investor will hold the remainder.
It invested $3.12 million and the other partners invested $4.68 million in the aggregate with the remainder of the purchase price and funds to renovate the property provided by a financial institution at a current rate of 3.70 per cent per annum.
“We are very excited to be once working with Takol,” noted Mitchell Cohen.
“The template that we have developed for renovating and selling industrial units primarily to users, is gaining traction in the marketplace. We are pleased to once again be part of this opportunity especially as the industrial asset class continues to get stronger,” added Cohen.
The existing rent roll allows for the renovation and turnover of units into condominiums while still collecting rental revenue from the tenants whose leases have terms left.
The purchase equates to approximately $312 per square foot while sales are expected to be in the range of $360 per square foot. Completion of the project is projected to take approximately 30 months.
Urbanfund is a Toronto-based real estate development and operating company listed on the TSX Venture Exchange under the symbol UFC. It is a reporting issuer in Alberta, British Columbia, and Ontario.
Urbanfund (UFC) is sitting at C$1.15 at 2:42 pm EST.
