(TheNewswire)
Edmonton, Alberta – TheNewswire – (February 6, 2023) – Yorkton Equity Group Inc. (“Yorkton” or the “Company”) (TSXV:YEG) is pleased to announce that after completing a thorough due diligence and evaluation process, the Company has removed all buyer’s conditions for the acquisition of “The Dwell”, a very recently constructed one hundred and eighty-eight (188) unit multi-family residential complex comprising of two luxury condominium grade buildings situated on approximately 3.31 acres of land located in the Schonsee neighborhood at 5530 and 5538 Schonsee Drive NW, Edmonton, Alberta (the “Property”) with a purchase price of $41,736,000.
In addition, the closing date for the acquisition of The Dwell has been amended from thirty (30) days following the waiver or satisfaction of all of the conditions to March 2, 2023 or sooner, at the discretion of the Company.
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The Property is comprised of 32 one-bedroom with one-bathroom suites, 9 one-bedroom plus den with one-bathroom suites, 143 two-bedroom with two-bathroom suites, and 4 three-bedroom with two-bathroom suites. Each suite is equipped with in-suite laundry, 6 piece energy efficient stainless steel appliances, designer cabinetry with quartz countertops and full height tile backsplash, luxury flooring and lighting packages, upgraded bathroom and plumbing fixtures, air conditioning in select units, 9-foot ceilings in all suites, energy efficient windows throughout, together with one hundred and ninety-one (191) heated underground parking stalls and seventy-three (73) surface parking stalls. The buildings are equipped with elevators serving all levels, with a designated elevator and loading zone for move in/out access and featuring extra wide corridors and spacious lobby for ease of wheelchair access. The Property also includes amenities such as a social room for entertaining, fitness center, two pet wash stations, a bicycle storage room, heated storage lockers on each floor, and enhanced security and safety features. In addition to the aerial photos above, a video of the property is available at the following link on Yorkton’s website – https://yorktonequitygroup.com/assets/.
The Property was very recently constructed in 2022 and is expected to have low operating costs and has already achieved 100% occupancy with a projected total annual revenue of approximately $3.4 million based on the current rent roll. It is expected to yield a capitalization rate of approximately 5% or an annual Net Operating Income (NOI) of about $2.1 million, with potential to grow in the coming years.
The Company has paid an initial deposit of $200,000 and a second non-refundable payment of $1,000,000. The remaining amount of the purchase price, subject to the usual adjustments, will be paid on the closing date.
Mr. Ben Lui, President and CEO of Yorkton comments, “As we broaden our investment strategy from mid-market rental properties to include luxury rental properties that are tailored to more affluent renters, we are very excited to announce our commitment to the acquisition of this highly sought-after luxury property by tendering the total non-refundable deposit of $1,200,000 and removing all buyer’s conditions. We look forward to continuing our accretive acquisitions to diversify our portfolio with additional high-quality properties of a similar size and believe that our experience and ability together with access to favorable mortgage financing will position us well to continue the rapid growth of Yorkton’s portfolio. Please stay tuned for further press release which will be disseminated upon the closing of this beautiful property, as well as additional acquisitions.”
About Yorkton
Yorkton Equity Group Inc. is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our current geographical focus is in secondary markets in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Our business objectives are to achieve growing Net Operating Income (“NOI”) as well as Net Asset Value (“NAV”) in our multi-family rental property portfolio in strategic markets across Canada.
The management team at Yorkton Equity Group Inc. has well over 30 years of real estate experience in acquiring and managing rental assets.
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. – Shareholder Communications: (780) 907-5263
Email: investors@yorktonequitygroup.com
Forward-looking information
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 press 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.
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