2007 annual report aveiro investment corp. - First West Properties

Purchase of Lethbridge Warehouse and Lethbridge Land
On June 5, 2007, Aveiro announced that it had entered into an
agreement to purchase a 110,205 square foot warehouse (the
“Lethbridge Warehouse”) at 2821 18 th Avenue North in the
Churchill Industrial Park in north Lethbridge, Alberta and an
adjacent 7.01 acre parcel of industrial land (the “Lethbridge Land”)
also in the Churchill Industrial Park. The Lethbridge Warehouse
was purchased for $5,500,000 and the Lethbridge Land was
purchased for $1,331,900, in both cases excluding closing costs.
The Lethbridge Warehouse consists of 103,805 square feet of
storage space and 6,400 square feet of offi ce/mezzanine space.
At the time of purchase, Aveiro entered into a 10 year lease with
a U.S. based plastic container manufacturer to lease
42,274 square feet.
The Lethbridge Land is currently zoned “I-G General Industrial”
and is located at 1820 – 31 Street in the Churchill Industrial Park
approximately one and a half blocks from the north Lethbridge
Smartcentre which is currently under construction. Management
believes that there is the potential to add value to the Lethbridge
Land through the land use planning process.
Completion of $11,000,000 Private Placement
On June 6, 2007, the Company announced that it had completed its
previously announced $11,000,000 private placement of 11,000,000
Class “A” voting common shares (“Common Shares”) at $1.00 per
share. Due to demand, the private placement was increased by
430,000 Common Shares to partially deal with increased demand
for the offering resulting in the issuance of 11,430,000 Common
Shares for gross proceeds of $11,430,000.
16 | Aveiro Investment Corp. | 2007 Annual Report
Subsequent to June 30, 2007
Announcement of $4,500,000 Private Placement
On June 19, 2007, Aveiro announced that it intended to issue up to
3,000,000 Common Shares at $1.50 per share for gross proceeds
of up to $4,500,000. This private placement was completed on
July 17, 2007. Net proceeds of the offering were approximately
$4,065,000 and will be used by Aveiro as working capital and for
additional real estate acquisitions.
Completion of Leasing of Lethbridge Warehouse
On August 2, 2007, Aveiro reported that it had fully leased the
recently acquired Lethbridge Warehouse. Aveiro entered into a
10 year lease with a U.S. based plastic container manufacturer
to lease approximately 42,274 square feet at the closing of the
acquisition and in August 2007 entered into a 2 year lease with a
leading Canadian agricultural business for the remaining square
footage in the Lethbridge Warehouse. These leases provide the
Company with rental revenue (net of operating costs) of $776,000
per annum.
Purchase of Saskatoon Warehouse
On August 28, 2007, Aveiro completed the purchase of an industrial
warehouse property (the “Saskatoon Warehouse”) located at
807/809 50th Street East in the North Industrial area of Saskatoon,
Saskatchewan for a purchase price of $2,000,000.
The warehouse property consists of four warehouse buildings
comprising in aggregate approximately 21,000 square feet on 2.45
acres of land. The property has been leased to an established
Saskatchewan industrial coating removal company for a ten year
term for rental revenue (net of operating costs) of $240,000 per
annum. The total purchase price of $2,000,000 was satisfi ed by
the issuance of 1,238,095 Common Shares.