Edmonton, Alberta – TheNewswire – September 9, 2021 – Yorkton Equity Group Inc. (“YEG” or the “Company”) (TSX.V: YEG) is pleased to announce the unconditional pending sale of the 193-unit Yorkton 108 development project (the “Project”) located in the City Centre of Surrey in Metro Vancouver, British Columbia, one of the fastest growing cities in Canada. A non-refundable deposit in the amount of $1,500,000 has been released to the Yorkton 108 Limited Partnership as the vendor. The Company owns approximately 25% of the limited partnership units (“LP Units”) in the Project. The Company will receive on a pro rata basis approximately 25% of the net distribution of the Project upon sale completion. The transaction is scheduled to close on October 18, 2021.
The Company has been notified by the Project management of its decision to divest the Project due to the receipt of an attractive offer providing a low risk and reasonable return in a short time-period for the limited partners. By way of context, the Project received four unsolicited offers to purchase within a short time frame through licensed Realtors, which is indicative of the strong demand for real estate in Metro Vancouver.
According to Mr. Ben Lui, CEO of the Company, “The fact that the Project received multiple offers is indicative of the confidence of the local developers about the future of the real estate market in the area as the development time horizon is expected to be 2 to 3 years. In addition, YEG’s investment and divestiture of the Project represents a significant and very real milestone in our strategic real estate investments. We have demonstrated our ability to not only meet the challenges during this Covid-19 era, but also to take advantage of the opportunities by leveraging a relatively low risk investment into a reasonable return within a relatively short time-period. The proceeds of this sale will provide YEG the opportunity to redeploy the capital for additional rental property acquisitions.”
With the anticipated post-COVID boom, historically low interest rates, and anticipated increase in immigration levels recently announced by the federal government, there is an unprecedented window of opportunity to invest in real estate, and YEG fully intends to take advantage of that opportunity.
Yorkton Equity Group Inc. is a fully integrated growth-oriented real estate investment company committed to providing shareholders with growing assets through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our geographical focus is in primary and secondary markets across Canada with diversified, growing economies, and strong population in-migration, with a current focus in British Columbia. Our business objectives are to achieve stable Net Operating Income (NOI) and growing Net Asset Value (NAV) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders. Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.
Further information about Yorkton is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information on Yorkton, please contact:
Ben Lui, CEO – Corporate Office: (780) 409-8228
Yorkton Equity Group Inc. – Investor Relations: (780) 907-5263
This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of Yorkton. Forward-looking information is based on certain key expectations and assumptions made by the management of Yorkton. Although Yorkton believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Yorkton can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Yorkton disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirement