|By Marketwired .||
|February 4, 2013 04:52 PM EST||
SAINT-JEAN-BAPTISTE, QUEBEC -- (Marketwire) -- 02/04/13 -- Fronsac Real Estate Investment Trust (TSX VENTURE:GAZ.UN) (the "Trust" or "Fronsac") announces the signing of protocols for the acquisition of interests in two real estate properties located in Trois-Rivieres, Quebec.
"We are pleased to announce these agreements under which Fronsac acquires interests in two prime real estate properties. The first property is leased to a major player in the food industry which operates a convenience store with a gas station. The second property is leased to another major player in the food industry which operates a Shell gas station. Both of these acquisitions meet the investment criteria established by the direction", stated Michel Lassonde, President and CEO of Fronsac.
The first property is located at the intersection of Barkoff and Des Ormeaux streets ("Property 1") in Trois-Rivieres (Cap-de-la-Madeleine). This represents an ideal location on commercial street Barkoff and adjacent to Place des Ormeaux. As part of the transaction, Fronsac will become General Partner of Limited Partnership CDM-1 ("CDM-1"), the partnership owning Property 1, by acquiring the units of two private investors (27)) and part of the units of Plaza Z-Corp Properties Inc. ("Plaza Z") (23%), for an aggregate 50% interest in CDM-1. Plaza Z and two private investors will retain 17% and 33% respectively of CDM-1's units. The total consideration of $660,000 to be paid at the closing of these acquisitions will be paid as follows:
1. $184,800 will be paid in cash to one of the private investors; 2. $475,200 will be paid by the issuance of 1,485,000 Preferred Units ("Units") of the Limited Partnership that will form Fronsac to acquire the interests of one of the private investors and Plaza Z in CDM-1, 536,250 preferred units in favor of one of the private investors and 948,750 preferred units in favor of Plaza Z. The units may be exchanged at any time for 1,485,000 units of Fronsac until December 31st, 2017.
Mr. Michael Zakuta, a trustee of Fronsac, is also an officer, director and indirectly one of the shareholders of Plaza Z, and therefore this transaction represents in part a related party transaction. Although some parties to the transaction transacted at arm's length, the independent trustees of Fronsac have commissioned an independent certified appraiser to obtain an external appraisal of Property 1, which valued the property between $1,220,750 and $1,349,750. The independent trustees approved the acquisitions since the price paid by Fronsac values Property 1 at $1,320,000 (considering the Trust indirectly acquires 50% of the property for a total consideration of $660,000), which is within the price range established by the independent certified appraiser. Property 1 currently generates triple-net revenues of approximately $98,860 annually.
The second property is located at the intersection of Barkoff Street and Exit 202 of Highway 40 ("Property 2") in Trois-Rivieres (Cap-de-la-Madeleine). This represents an ideal location since it is directly at the exit of Highway 40. In accordance with the protocols, Fronsac will acquire the interest of a private investor (44%) and a part of the interest of Plaza Z (21%), for a total interest of 65% in Property 2. Plaza Z and another private investor will keep an interest of 23% and 12% respectively in Property 2. The total consideration of $1,587,950 to be paid at the closing of these acquisitions will be paid as follows:
1. $1,074,920 will be paid in cash to the private investor; 2. $513,030 will be paid by the issuance, in favor of Plaza Z, of 1,603,200 Preferred Units ("Units 2") of the Limited Partnership that will form Fronsac. Units 2 may be exchanged at any time for 1,603,200 units of Fronsac until December 31st, 2017.
As in the case of the acquisition of Property 1, this represents in part a related party transaction since Michael Zakuta, a trustee of Fronsac, is also an officer, director and indirectly one of the shareholders of Plaza Z. Although a party to the transaction transacted at arm's length, the independent trustees of Fronsac have again commissioned an independent certified appraiser to obtain an external appraisal of Property 2, which valued the property between $2,329,875 and $2,575,125. The independent trustees approved the acquisitions since the price paid by Fronsac values Property 2 at $2,443,000 (considering the Trust indirectly acquires 65% of the property for a total consideration of $1,587,950), which is within the price range established by the independent certified appraiser. Property 2 currently generates triple-net revenues of approximately $194,000 annually.
The closing of both transactions is scheduled before March 15th, 2013 with effective date of transaction February 1st, 2013, and is subject to customary conditions and the approval of the different competent authorities, including the approval of the TSX Venture Exchange.
For more information regarding these acquisitions, which are, in part, related party transactions under Regulation 61-101 respecting Protection of Miniority Security Holders in Special Transactions, please refer to the Material Change Report that will be available on SEDAR at www.sedar.com.
Fronsac is also pleased to announce the appointment of Mr. Etienne Lapointe as Chief Financial Officer of the Trust, following the resignation of Mr. Martin Grimard which takes effect on the same date.
Mr. Lapointe is a member of the Order of Chartered Accountants of Quebec and has over five years of experience in various companies. Mr. Lapointe's expertise includes investment analysis, financing structures, financial reporting and analysis of internal controls.
Mr. Lapointe will serve as Chief Financial Officer of Fronsac on a consulting basis.
Michel Lassonde, CEO and President of the Trust, is pleased to welcome Mr. Lapointe.
It is with regret that Fronsac has accepted the resignation of Mr. Grimard and wishes to express its gratitude for his dedication and commitment over the years he served as Chief Financial Officer of the Trust. It is noteworthy that Mr. Grimard will remain Secretary and Trustee of the Trust.
Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties, rented to strong tenants under long term, management free and net leases.
This press release contains forward-looking statements and information as defined by applicable securities laws, including statements relating to Fronsac and expectations of the management regarding a proposed transaction and the expected benefits thereof. There is no assurance that the proposed transaction will be carried out and that the anticipated benefits will materialize. The proposed transaction is subject to approval and consent of stakeholders and there is no certainty that these will be achieved. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.
The TSX Venture Exchange and its regulatory service provider (as that term is defined in the policies of the TSX Venture Exchange) decline all responsibility for the adequacy or accuracy of this release.
President and CEO
Fronsac Real Estate Investment Trust
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 30, 2016 05:45 PM EDT Reads: 1,367
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Sep. 30, 2016 05:30 PM EDT Reads: 685
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Sep. 30, 2016 04:45 PM EDT Reads: 5,301
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sep. 30, 2016 04:30 PM EDT Reads: 732
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 30, 2016 04:30 PM EDT Reads: 1,823
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Sep. 30, 2016 04:30 PM EDT Reads: 387
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 30, 2016 04:00 PM EDT Reads: 3,587
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Sep. 30, 2016 03:45 PM EDT Reads: 3,658
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 30, 2016 03:30 PM EDT Reads: 378
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 30, 2016 03:00 PM EDT Reads: 3,015
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 30, 2016 03:00 PM EDT Reads: 568
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your ...
Sep. 30, 2016 03:00 PM EDT Reads: 1,247
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Sep. 30, 2016 03:00 PM EDT Reads: 3,672
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 30, 2016 03:00 PM EDT Reads: 1,655
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Sep. 30, 2016 02:30 PM EDT Reads: 2,468
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Sep. 30, 2016 02:30 PM EDT Reads: 377
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 30, 2016 02:15 PM EDT Reads: 1,728
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 30, 2016 02:15 PM EDT Reads: 1,163
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 30, 2016 01:45 PM EDT Reads: 588
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Sep. 30, 2016 01:15 PM EDT Reads: 5,166