ProGreen Signs LOI With AMREFA to Acquire All of Its Property Holdings in the US
BIRMINGHAM, MI - (NewMediaWire) - December 29, 2015 - PROGREEN PROPERTIES, INC (PROGREEN) (OTC PINK: PGEI) is pleased to announce that a letter of intent has been signed with AMERICAN RESIDENTIAL FASTIGHETER AB (AMREFA) (Sweden), for the acquisition of 100% of their US subsidiary, AMERICAN RESIDENTIAL GAP LLC (ARG). This will result in PROGREEN taking over 13 rental properties as well as a large property that has been completely rebuilt and is now ready to be sold on the open market. All properties are located in Oakland County, Michigan. Net value of the properties after debt is estimated at $1.1 M. Following all required approvals from AMREFA stockholders, we expect to complete this transaction in late January 2016.
In this transaction AMREFA will receive preferred shares, convertible into common stock or redeemed after 12 months in exchange for the sale to us of their subsidiary, ARG, which holds all of their U.S. real estate investment properties. Of our current outstanding debt to AMREFA of approximately $270k, $200k will be paid off from the sale of the large property mentioned above and the remaining amount converted into preferred shares.
This represents a great step for PROGREEN, not only to substantially strengthen our balance sheet, but also as it provides an immediate income stream from the rental properties. It will also generate cash to reduce debt from the sale the large property that forms part of the portfolio.
About ProGreen Properties, Inc.
PROGREEN PROPERTIES, INC. (PROGREEN) (OTC PINK: PGEI) based in Bloomfield Hills, Michigan, is engaged in the business of acquiring, refurbishing and upgrading residential real estate into modern affordable homes, some being aimed at the local real estate market and some sold to European Property Investors. The company is also presently looking at negotiating investment opportunities in Baha California, Mexico.
PROGREEN wholly owned subsidiaries:
PROGREEN REALTY LLC, purchasing, leasing and sale of properties.
PROGREEN PROPERTY MANAGEMENT LLC, management of properties sold to investors.
PROGREEN CONSTRUCTION LLC, in house construction company.
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