|By Marketwired .||
|December 24, 2013 04:30 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/24/13 -- TitanStar Properties Inc. (TSX VENTURE: TSP) ("TitanStar" or the "Company") announces that it will be acquiring a 100% beneficial interest in the "Almeda Crossing" retail shopping center in Houston, Texas, pursuant to a purchase and sale agreement dated December 20, 2013 (the "Purchase Agreement") between Almeda-Rowlett Retail, LP, as seller, and TSP Almeda Crossing, LP, a Nevada limited partnership, as buyer, in which the Company holds a 100% general partnership interest through TitanStar GP Holdings Inc. and a 100% limited partnership interest through TitanStar LP Holdings Inc. The seller is at arm's length to the Company.
Almeda Crossing is a 223,223 square foot retail shopping "power centre" on approximately 21.8 acres of land, situated along Almeda Geona Road, and highly visible from Interstate 45. Construction on the shopping center completed in 2006 and it is currently over 98% triple net leased and has a variety of retail clients with major tenants including Ross (for 27,650 square feet), Marshall's (for 25,000 square feet), Staples (for 20,480 square feet), Conn's Electronics (for 30,000 square feet) and PetSmart (for 19,509 square feet).
The total purchase price for Almeda Crossing is $35 million and the closing of this acquisition is scheduled for March 31, 2014. There are several closing conditions that need to be satisfied or waived by TSP Almeda Crossing, LP prior to the closing of this acquisition; including but not limited to the Company's completion of a due diligence review of the property, the receipt of estoppel certificates and subordination agreements from certain major tenants as prescribed in the Purchase Agreement and, on or before February 5, 2014, procurement by TSP Almeda Crossing, LP of a loan on the terms and conditions satisfactory to it in its sole and absolute discretion.
TitanStar is a real estate issuer whose investment strategy focuses on building a portfolio of well-positioned, undervalued or underperforming stabilized assets, focusing on geographic areas. TitanStar currently holds a 50% limited partnership interest in the Sahara Crossing, LP, a Nevada limited partnership which owns an approximately 61,125 square foot retail building located just east of Decatur Boulevard on Sahara Avenue in Las Vegas, as well as a 50% limited partnership interest in the Deer Springs Crossing Limited Partnership, a Nevada limited partnership which owns the Deer Springs Crossing Shopping Center, a 22.8 acre retail development project also located in Las Vegas. In December 2012, the Company acquired a 50% limited partnership interest in TSP LP I, L.P., a Nevada limited partnership which owns the Swanway Plaza, a 55,790 square foot retail shopping centre in Tucson, Arizona (see the Company's news release of January 2, 2013). In January 2013, the Company acquired a 50% limited partnership interest in TSP LP II, L.P., a Nevada limited partnership which owns the Kohl's San Tan Plaza, a 29,945 square foot retail shopping centre in Chandler, Arizona (see the Company's news release of January 28, 2013). In September 2013, the Company acquired a 38.4% beneficial interest in Adam's Dairy Landing, a 254,036 square foot retail shopping centre, in Blue Springs, Missouri (see the Company's news release of September 30, 2013). These recent investments reflect TitanStar's revised investment strategy, announced on September 28, 2012, which added the following objectives:
-- begin to build, with or without a partner acceptable to management, a portfolio of stabilized assets that produce a reasonably reliable cash flow that would be available for distribution to shareholders when a distribution policy is determined by the Board of Directors; -- engage local companies to manage such properties; and -- finance the purchase of such assets using conservative financing assumptions, determined by management from time to time.
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the identification, analysis and potential acquisition of future real estate assets. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
Neither 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.
TitanStar Properties Inc.
T. Richard Turner
President, CEO and Director
(604) 408-3801 (FAX)