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Strongco signs leaseback for Fort McMurray branch


July 10, 2014
By Strongco Corporation

July 9, 2014, Mississauga, Ont. – Strongco Corporation announced
that it has completed the sale and 15-year leaseback of its recently
constructed branch in Fort McMurray, Alberta to Imperial Equities Inc. for the
purchase price of $19.4 million.

July 9, 2014, Mississauga, Ont. – Strongco Corporation announced
that it has completed the sale and 15-year leaseback of its recently
constructed branch in Fort McMurray, Alberta to Imperial Equities Inc. for the
purchase price of $19.4 million.

 

As previously announced, Strongco plans to monetize several
of its real estate holdings through sale and leaseback transactions, with
proceeds to be redeployed to reduce debt. 
In addition to the completed sale in Fort McMurray, a Purchase and Sale
agreement has been signed for the newly constructed Saint
Augustin-de-Desmaures, Quebec facility, as well as branches in Val D'Or and
Moncton, New Brunswick; and a Letter of Intent with a third purchaser has been
agreed to for the sale and leaseback of Strongco's main branch and head office
in Mississauga, Ontario. The gross proceeds from the transactions are expected
to be approximately $47 million. It is anticipated that the remaining deals
will be completed in the third quarter of 2014.

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"It has always been management's intent to not tie up
capital in real estate assets over the long term, and, given the substantial
increase in property values within these regions, the opportunity exists for
Strongco to benefit from the current market conditions and use the proceeds
more effectively within the business operations," said Bob Dryburgh,
President and Chief Executive Officer. "These sale and leasebacks,
including the completed transaction in Fort McMurray, support our strategy to
continually strengthen Strongco's balance sheet and deploy capital more
efficiently."