Melcor Developments Ltd. (TSX:MRD) Reports Sale of The Market at Magrath for $34.5 Million
EDMONTON, ALBERTA -- (Marketwire) -- 08/16/11 -- Melcor Developments Ltd. (TSX:MRD), today announced that it has entered into an unconditional agreement to sell The Market at Magrath, a 78,400 sq. ft. commercial development in southwest Edmonton, Alberta, which includes both retail and office space. The transaction is scheduled to close on September 1, 2011 at a sale price of $34.5 million to an institutional buyer.
The Company made the strategic decision to sell this investment property subsequent to receiving a non-solicited offer to purchase. The proceeds will be utilized to reduce debt levels, enhance the company's cash position and redeploy capital to other strategic opportunities. Melcor continues to create value for shareholders through the development of income-producing properties, in line with the Company's business objectives.
The sale of this asset will generate net cash proceeds to the company of approximately $15.0 million. There will be a minimal impact on earnings as a result of this sale as Melcor reports its investment properties at fair value under IFRS. The transaction will be reflected in the Company's third quarter results.
The Company is expected to release third quarter earnings at the close of markets on November 3, 2011.
Melcor Developments Ltd. - Business Contact
Ralph B. Young
President & CEO
Melcor Developments Ltd. - Investor Relations
Jonathan Chia, CA
VP Finance & CFO