BURLINGTON, ONTARIO -- (Marketwire) -- 01/14/13 -- Tempus Capital Inc. ("Tempus") announces it is executing its growth strategy by entering into two separate agreements of purchase and sale in respect of commercial / retail plazas in southern Ontario.
The first agreement of purchase and sale (the "First Agreement") concerns a contemplated acquisition of a commercial / retail plaza in southwestern Ontario (the "First Asset").
The purchase price for the First Asset is $7,650,000. Closing is currently set for February 15, 2013, subject to Tempus carrying out due diligence review of the First Asset, including Phase 2 environmental testing. It is possible that the timing of this Phase 2 testing may necessitate that the closing date be extended. Tempus has received a commitment from a first mortgage lender to finance $5,737,000 of the purchase price.
A principal of Tempus has agreed to provide a limited guarantee of $2,000,000 (two million dollars) to such mortgage lender, in return for which he will be paid by Tempus a quarterly standby fee of $5,000 (five thousand dollars), which equates to 25 basis points of the guaranteed amount per quarter with the first payment due one quarter after closing.
That same principal personally funded the refundable $50,000 deposit on the First Asset, in consideration for which he will immediately be issued 666,667 Tempus common shares.
The First Asset is a fully tenanted commercial / retail plaza of 32,000 sq.ft. The anchor tenant is a national drug chain.
The second agreement of purchase and sale (the "Second Agreement") is for a fully tenanted commercial / retail plaza of 112,000 sq.ft. in a large metropolitan city, also in southwestern Ontario. Tenants include a Schedule 1 bank and national retailers.
The purchase price for the Second Asset is $29,500,000. On signing the Second Agreement, Tempus provided a $50,000 deposit which can be refunded to Tempus within a 45 day period, during which period Tempus may conduct its due diligence review of the Asset. Closing is currently set for May 31, 2013, at which time the $50,000 deposit will be credited against the purchase price.
Said Chief Executive Officer Russell Tanz, "Tempus intends to deliver real growth to its shareholders by purchasing quality commercial / retail properties at competitive pricing with appropriate financing. These two properties are just the first step in aggressively executing on that plan. We anticipate 2013 will be an exciting accretive year for the shareholders."
Tempus is carrying out equity financings to fund the equity portions of the purchases and working capital. The size, structure and pricing of such financings will be determined by Tempus' board and management in consultation with its agent M Partners Inc.
Tempus is a reporting issuer in British Columbia, Ontario and Alberta. None of Tempus` securities trade through any stock exchange or quotation facility.
On behalf of the board of directors
Tempus Capital Inc.
Russell Tanz, President and CEO
No regulator nor any Regulation Services accepts responsibility for the adequacy or accuracy of this press release. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
Tempus Capital Inc.
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