Parkit Acquires Nashville Off-Airport Facility
Vancouver, BC – November 2, 2015 - Parkit Enterprise Inc. (“Parkit,” or “the Company”) [TSX-V: PKT, OTCQX: PKTEF] is pleased to announce that on October 30, 2015, its joint venture PAVe LLC successfully acquired Fly Away Airport Parking, a 1,140 stall, 8.5 acre facility servicing the Nashville International Airport.
The US$8.0 million acquisition was completed with $5.4 million of financing at LIBOR plus 230 basis points, amortizing for periods up to 25 years. In addition, $1.2 million of vendor financing was utilized at 4% amortizing over 5 years.
Parkit invested US$677,000 representing 50% of the contributed capital for the acquisition. The remaining capital was funded by Parking Real Estate LLC (“PRE”), Parkit’s joint venture partner.
The acquisition value represents a capitalization rate of approximately 8.0% on first year net operating income. The Company anticipates strong yield growth from optimization strategies and operational efficiencies through the life of the investment.
Nashville, Tennessee’s state capital, is regarded as a top-ten US real estate investment market. Considered an “18-hour” city, it enjoys a growing and vibrant core with healthy economic indicators and outlook, making it a strong secondary market.
“In addition to our existing institutional joint venture, this acquisition provides direct investment returns for Parkit, diversifying our portfolio, sources of income and potential capital gains. Together with our partners at PRE we have an excellent track record with off-airport parking assets, and we look forward to similarly strong performance from Fly Away Nashville.” – Rick Baxter, CEO
Note: all currencies in USD.
Parkit Enterprise Inc. is engaged in the acquisition, optimization, and asset management of income-producing parking facilities across the United States.
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Parkit Enterprise Inc.
Suite 1088 – 999 West Hastings Street
Vancouver, British Columbia
Canada V6C 2W2
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Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. 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. In particular, there is no assurance the joint venture will acquire aggregate assets of $500 million; that the Company will realize any or all of the earn-outs from its existing parking assets; or that the joint venture will be profitable.