EDMONTON, June 2, 2016 /CNW/ – SpruceLand Properties Inc. (“SpruceLand” or the “Corporation“) today announced that, effective as of June 1, 2016, it has closed the previously announced sale of the Corporation’s two manufactured homes communities (the “Manufactured Homes Communities Disposition“) for an aggregate sale price of approximately $40.6 million, which was satisfied by: (i) the assumption of mortgages with an aggregate principal balance of approximately $6.0 million; and (ii) a cash payment of approximately $34.6 million.

In addition, three other previously announced pending sales have all closed in accordance with the previously announced sale terms:

Upon closing of the above-mentioned sales, together with the previously announced sale of the Corporation’s commercial properties portfolio, the Corporation has disposed of approximately 96% of its real estate assets.

At a shareholders meeting held on March 10, 2016, the Corporation obtained shareholder approval for the sale of all or substantially all of the Corporation’s operating assets and to subsequently dissolve pursuant to the provisions of the Business Corporations Act (Alberta), and in conjunction therewith, to apply to the Alberta Securities Commission for an order deeming it no longer to be a reporting issuer, to liquidate its residual assets (consisting principally of two investment properties and raw land holdings), to discharge its remaining liabilities and to distribute its remaining property in one or more distributions to its shareholders. As previously announced, the Corporation anticipates making an initial distribution to shareholders of approximately $25.00 per share within the next 30 days, more or less.

About SpruceLand

SpruceLand Properties Inc., formerly Spruce Land Developments Ltd., founded in 1969 with a single multi-family project, had grown consistently to have, prior to the shareholder approved sales, a diversified portfolio of revenue producing properties including office, retail and industrial buildings and manufactured home parks in Alberta, Saskatchewan and BC. SpruceLand Properties Inc. is a Canadian controlled private corporation for tax purposes and a reporting issuer in the Province of Alberta.

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking information” as defined under applicable Canadian securities law (“forward-looking information” or “forward-looking statements“) which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the Corporation. Statements other than statements of historical fact contained in this press release may be forward-looking information. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the contemplated initial distribution to shareholders and other expectations, projections or other characterizations of future events or circumstances and the future economic performance of the Corporation. The Corporation has based these forward-looking statements on its current expectations and assumptions about future events, which may prove to be incorrect.

When relying on forward looking statements to make decisions, readers are cautioned not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and do not take into account the effect of transactions or other items announced or occurring after the statements are made. All forward-looking information in this press release speaks as of the date of this press release. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. The Corporation does not undertake any obligation to update any such forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE Spruceland Properties Inc.