Prime Acquisition Corp. (PACQF: OTCQB) | Prime Announces Sale of Property in Milan, Extension of Warrants Expiration by Three Years

Prime Announces Sale of Property in Milan, Extension of Warrants Expiration by Three Years

Feb 08, 2018

OTC Disclosure News Service

Prime Acquisition Corp. (“Prime” or the “Company”) (OTCQB: Common Stock:
“PACQF”, Units: “PAQUF”, Warrants: “PAQWF”), an owner and operator of
office, commercial and industrial properties in Italy, today announced
the sale of a property under its Ellegi S.r.l. subsidiary, a strategic
transaction that will streamline the Company’s real estate portfolio and
improve its financial position.

Prime closed on the sale of a portion (approximately 52% of gross
leasable area) of the via Lazio building, an office property in
southwest Milan, for €1.85 million (approximately US$2.27 million, using
an exchange rate of €1 to US$1.2270) on February 8, 2018. The remaining
portion of the building is 100% occupied.

The Company also announced that it has sold an option to purchase its
via Buozzi building to a third party for an exercise price of €150,000,
which expires at the end of 2018. The via Buozzi building is an office
property located approximately five miles from the via Lazio building
and is also owned under Prime’s Ellegi S.r.l. subsidiary.

The Company intends to use the proceeds from the via Lazio transaction
to pay off a significant portion of the building’s mortgage, reduce
debt, and make select structural improvements.

Prime’s portfolio of properties includes office, logistics, commercial
and industrial real estate assets located in Milan, Italy, and the
surrounding areas. Prime’s real estate portfolio consists of the
following nine properties, which includes the remaining ownership
position in the via Lazio property.

 

Real Estate Portfolio Summary

 

 

 

Property Name/Location

 

 

Type

 

 

Approx. Gross Leasable Area

(in sq. meters)

 

 

Purchase Price on 9/30/2013

($ in millions)

 

 

Tenant

 

 

Average Lease Duration (Years)

1

 

 

Milanofiori, Building A5

 

 

Office

 

 

865

 

 

$3.13

 

 

Various int’l and Italian firms

 

 

10

2

Milanofiori, Building Q7

Office

586

$1.27

Various int’l and Italian firms

10

3

Milanofiori, Building N

Office

1,750

$4.48

Various int’l and Italian firms

10

4

Viale Lucania, Buccinasco

Office, Industrial

16,230

$22.27

Microelettrica Scientifica

18

5

Via Buozzi 22, Buccinasco

Office

545

$1.85

Various int’l and Italian firms

10

6

Via Lazio 95, Buccinasco (portion of building)

Office, Warehouse

2,0501

$2.552

Italian firms

10

7

Via Emilia, Buccinasco

Commercial

200

$0.35

Italian commercial co.

10

8

Via Mulino, Buccinasco

Commercial

360

$1.37

Merkur

8

9

Milanofiori, Building Q5

Office

400

 

 

$1.26

Italian firms

10

22,986

 

 

$38.53

 

1 Represents remaining ownership in the via Lazio building
after closing of the sale transaction on Feb. 8, 2018
2
Proportional amount of current ownership

The Company also announced the extension of the expiration date for its
warrants from March 30, 2018, to March 30, 2021.

Management Commentary

Mr. William Yu, Chief Executive Officer and Director of Prime, stated,
“We are pleased to have closed on the via Lazio building sale, another
positive step forward in our ongoing efforts to right-size our portfolio
of real estate assets in Italy and strengthen the Company’s financials.
This transaction will enable Prime to pay off a significant portion of
the building’s mortgage, making the remaining portion of via Lazio
mortgage-free; reduce tax debt; and make necessary structural
improvements. Given our long-term strategy and view for the Company, we
are pleased to extend the expiration of our warrants by three years,
from 2018 to 2021. We continue working to streamline our operations and
improve our financial standing, while exploring opportunities to grow
our asset portfolio and business.”

About Prime Acquisition Corp.

Prime Acquisition Corp. is a Cayman Islands company that owns and
operates office, commercial and industrial properties in Italy. Prime is
focused on building a portfolio of high yield-producing assets.

Forward-looking Statements

This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 about
Prime Acquisition Corp. Forward-looking statements are statements that
are not historical facts. Such forward-looking statements, based upon
the current beliefs and expectations of Prime’s management, are subject
to risks and uncertainties, which could cause actual results to differ
from the forward-looking statements. The following factors, among
others, could cause actual results to meaningfully differ from those set
forth in the forward-looking statements:

• Continued compliance with government regulations;

• Changing legislation or regulatory environments;

• Requirements or changes affecting the businesses in which Prime is
engaged;

• Industry trends, including factors affecting supply and demand;

• Labor and personnel relations;

• Credit risks affecting the combined business’ revenue and
profitability;

• Changes in the Italian real estate industry;

• Changing interpretations of generally accepted accounting principles;

• General economic conditions; and

• Other relevant risks detailed in Prime’s filings with the Securities
and Exchange Commission.

The information set forth herein should be read in light of such risks.
Prime does not assume any obligation to update the information contained
in this press release.

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Article source: http://www.otcmarkets.com/stock/PACQF/news?id=182940

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