Delavaco Residential Properties Corp. Provides Update on Possible Transaction, Changes to the Board of Directors and Executive Management and Operations

TORONTO, ON--(Marketwired - July 02, 2015) - Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSX VENTURE: DVO.U) (OTCQX: DELAF) is pleased to provide the following update.

Possible Transaction

As reported on April 15, 2015, the Company had entered into discussions regarding a possible transaction to acquire a controlling interest in the Company. The Board of Directors (the "Board") had previously established a special committee of the Board ("Special Committee") comprised of two independent directors, Messrs. Michael Serruya and Romeo DeGasperis, to review and consider proposals in respect of such a possible transaction. The Special Committee completed the mandate and made its recommendation to the Board and the Board unanimously concluded that the Company will no longer pursue any such possible transaction and that the mandate of the Special Committee has been completed.

Change of Management and Board of Directors

The Company would like announce that Andrew DeFrancesco, Chairman of the Board and Chief Executive Officer ("CEO"), has resigned as CEO effective immediately and relinquished his position as Chairman. Mr. DeFrancesco will continue on the Board to serve as a director. There is no termination fee associated with Mr. DeFrancesco's departure. The Company would like to express its sincere thanks to Mr. DeFrancesco for his commitment to date and the Board looks forward to continuing this relationship through his directorship.

The Board will temporarily leave the CEO position unfilled. The Compensation and Governance Committee, comprised of Messrs. Michael Serruya (Chairman), Kelly Hanczyk and Marc Muzzo, have recommended, and the Board has unanimously approved Mr. Keith Ray, a current independent director, to assume the role of Interim Chairman. At the operational level, Mr. Jorge Aldecoa, currently Senior Asset Manager, will be promoted into the role of Interim Chief Operating Officer and will report directly to the Board.

Mr. Ray has been a member of the Board since helping take the Company public in January, 2014 and shall remain Chairman of the Audit Committee. Mr. Ray carries a breadth of experience in various private and public real estate companies, including both private and public real estate investment trusts and currently acts as a director of two other Canadian listed reporting issuers, Firm Capital Mortgage Investment Corporation, listed on the TSX, and Cliffside Capital Ltd, listed on the TSX-V. For 27 years until his retirement in 2007, Mr. Ray was a Chartered Professional Accountant and partner at KPMG LLP and a KPMG LLP predecessor firm where he served as audit partner and relationship partner for a wide variety of public and private companies, mostly in the real estate industry.