|By Marketwire .||
|March 13, 2013 07:00 AM EDT||
BIRMINGHAM, MI -- (Marketwire) -- 03/13/13 -- ProGreen Properties, Inc. (ProGreen) (OTCQB: PGEI) -- ProGreen is pleased to announce that the company has signed a Memorandum of Understanding (MOU) with Futura Fastigheter AB (Futura), subject to execution of the definitive agreement, expected to be signed within the next four weeks. Futura is a Swedish investment company which has been set up exclusively for the purpose of investing in income producing residential properties with ProGreen and expects to make its first investment of up to $3,000,000 before the summer with a second larger round planned for this fall. The investments by Futura will be used as capital for ProGreen to cover the cost of acquisition and refurbishment of potential investment properties. Once refurbishment has been completed and the property has been leased to a suitable tenant, Futura will acquire the property from ProGreen but ProGreen will maintain the property management.
ProGreen expects to be able to keep its property resale margins in transactions with Futura at present levels but, through better funding, substantially increase the number of transactions and considerably reduce turnaround times.
"This is a big step for ProGreen and we are very excited about the opportunity to work with Futura. We initiated our discussions in Sweden in August last year and now stand close to entering into a working agreement. Representatives of Futura spent four days here in Michigan as part of their due diligence process, ending with the signing of the MOU on March 10 in our office in Birmingham. With Futura as an investment partner, ProGreen expects be able to expand in a very accelerated pace during 2013 and 2014," says Jan Telander.
About ProGreen Properties, Inc.
ProGreen Properties, Inc. (ProGreen) (OTCQB: PGEI) based in Birmingham, Michigan is engaged in the business of acquiring, refurbishing and upgrading residential real estate into high yielding Investment Properties that are subsequently sold to European Real Estate Investors.
ProGreen believes that Michigan presently offers some of the best investment opportunities in the US residential property market.
ProGreen Realty LLC, a wholly owned subsidiary to ProGreen, is responsible for all purchasing, leasing and sale of properties.
ProGreen Property Management LLC, a wholly owned subsidiary to ProGreen, maintains management of all properties sold to investors.
This press release contains statements, which may constitute 'forward-looking statements' within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. 'Forward-looking statements' are based upon expectations, estimates and projections at the time the statements are made that involve a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from those anticipated.