NEWWestern Garden Props Reports Recovery of Loan Investments Western Garden Properties Reports Recovery of Loan Investments
Vancouver BC – Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) is pleased to announce that its wholly owned subsidiary Western Garden Properties Corp. (“Western Garden”) has reported its recovery of all mortgage loans made to the Greater Vancouver-based real estate projects over the last two years.
The original intention of the Company’s decision to pursue alternative value-enhancing opportunities in areas beyond resource-based industry was to increase the firm’s return on its excess available cash. Another consideration of these loans and investments was that the Company had not yet commenced construction of the Phase I Potash Project (“the Project”) at the time – constructions that was expected to take a longer time for the preparation than first envisioned. Therefore, the Company is pleased to report that it has successfully invested in a total of 9 land mortgage deals over the last two years through its subsidiary of Western Garden totaled at $50,687,084. As of this month, all mortgage principals and interests were collected successively, resulting in Internal Rate of Return (IRR) at about 9.1%.
All recovered funds were and will continue to be applied to the construction of the Company’s wholly owned potash Project. Currently, drillings for cavern development and process plant construction are both underway, with all work on track to meet projected schedules and budgets.
In addition to mortgage loans, Western Garden also made 5 equity investments in real estate projects in the Greater Vancouver Area totaled at just over $20,000,000. Among them is one office building project, and other four are townhouse developments in transit-oriented neighborhoods and are structured with the partnerships of reputable local developers. Management is now in discussion on ways of broadening our partnership base of potential investors through an investment fund to jointly develop similarly scaled real estate projects.
The Hon. James Moore, Chairman of Western Resources Corp. commented: “I am very proud of the remarkable achievements that the team has delivered to date in our real estate investment portfolio, particularly when considering the broader market conditions. I do believe that recent progress of the Company’s potash project has demonstrated that the team is able to deliver the completion of the project on time and within budget.”
Cautions Regarding Forward-Looking Statements
https://www.westernresources.com/news/2019/07/25/western-garden-properties-reports-recovery-loan-investments
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