Urbanfund Corp. Announces Closing of the Acquisition of a 20% Interest in a 110 Unit Residential Portfolio Located in Dartmouth, Nova Scotia

TORONTO, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX Venture: “UFC”) (“Urbanfund” or, the “Company”), announced today that the Company, along with Westdale Construction Limited (“Westdale”), has completed the previously-announced acquisition of the 110 unit The Manors Luxury Apartment portfolio located in Dartmouth, Nova Scotia. An incorporated subsidiary, West Mic Mac Properties Inc. (the “Purchaser”), will purchase the portfolio with the Company being a 20% shareholder and Westdale holding the remaining 80% interest.

“Urbanfund is very excited to be part of this opportunity to purchase an interest in this 2-building luxury portfolio,” stated Mitchell Cohen. “This spectacular property on over 4 acres of treed-lands will be a worthy addition to our mixed-use asset base.”

“This acquisition is proximate to our current Dartmouth holdings with 110 'condo quality' units overlooking the water,” stated Cohen.

The Manors Luxury Apartment Portfolio offers a variety of large 1, 2 and 3-bedroom suites of exceptional quality over 2 separate buildings built in 1981. The luxury project caters primarily to “empty-nesters” with its spacious units, ample terraces, generous outdoor amenity space and proximity to local transit, shopping and greenspace.

The Purchaser purchased the portfolio for $17,000,000 plus customary closing costs. The purchase price was funded by a $11,800,000 mortgage and the balance by pro rata equity subscriptions from the Company and Westdale. The Company’s subscription for a 20% interest in the Purchaser was satisfied with cash on-hand. The Company provided a limited guarantee of the mortgage proportionate to its interest in the Purchaser. Property Management will be the responsibility of Westdale and will be compensated at market rates.

“We have been waiting to pick up these types of assets in such a highly desired location and we executed on it,” noted Cohen. “With its proximity to our other Dartmouth assets, we will look to take advantage of economies of scale.” The portfolio is in the Micmac Village area of Dartmouth which is a popular, vibrant and affluent community characterized by a highly educated and affluent demographic. Situated along the Lake Banook Trail, the neighbourhood is defined by its beautiful landscaped and natural surroundings, including walking trails and parks. The buildings are located right across the street from Mic Mac Mall, Dartmouth’s major mall.