TORONTO, June 24,
2024 /CNW/ - West Side Square Development Fund (the
"Trust") announced today that it has entered into a loan
agreement in the amount of US$169,300,000 (the "Loan") through its
nominee entity, Avenir West Side Square LLC (the "Nominee")
as borrower, BPT WSS FUNDING LLC, LEXINGTON EV MARION LLC,
LEXINGTON SI3 MARION LLC, and BPSJ MARION LLC (collectively, the
"Lenders") and BPT WSS FUNDING LLC, in its capacity as
administrative agent on behalf of the Lenders. The maturity date of
the Loan is June 30, 2027, however,
the Trust has the option to request two 6-month extensions of the
term of the Loan (December 31, 2027
or June 30, 2028, respectively),
subject to the satisfaction of certain conditions under the loan
agreement.
In addition, the Trust through its Nominee has entered into a
development management agreement with Lantree Developments LP
("Lantree") and Altree Management Inc. ("Altree", and
collectively with Lantree, the "Development Manager") under
which the Development Manager has been retained to perform certain
management and supervisory services with respect to certain
pre-development, development and other construction services to be
provided by a contractor or any subcontractors and consultants with
respect to the development of the mixed-use purpose-built rental
building containing 477 rental units and approximately 9,800 square
feet of commercial space located at 66 Broadway in the Journal
Square neighborhood in Jersey City, New
Jersey (the "Project"), as further described in the
Trust's final prospectus for its initial public offering.
The Trust was established for the primary purpose of indirectly
owning an interest in the development of the Project. The Project
is located a mile away from the Journal Square Transportation
Center, which is an approximate 13-minute train ride from the
financial district of Manhattan.
West Side Square Development Fund
West Side Square Development Fund was formed for the primary
purpose of indirectly owning an interest in the development of a
mixed-use purpose-built rental building containing 477 rental units
and approximately 9,800 square feet of commercial space located at
66 Broadway in the West Side Square neighborhood in Jersey City, New Jersey.
Forward-Looking Statements
This news release contains statements that include
forward-looking information within the meaning of Canadian
securities laws. These forward-looking statements reflect the
current expectations of the Trust regarding future events,
including statements concerning the development of the Project. In
some cases, forward-looking statements can be identified by terms
such as "may", "might", "will", "could", "should", "would",
"occur", "expect", "plan", "anticipate", "believe", "intend",
"seek", "aim", "estimate", "target", "project", "predict",
"forecast", "potential", "continue", "likely", "schedule", or the
negative thereof or other similar expressions concerning matters
that are not historical facts.
Material factors and assumptions used by management of the Trust
to develop the forward-looking information include, but are not
limited to, the Trust's current expectations about: real property
ownership and revenues; construction and development risk;
obtaining necessary development permits for the Project; the
realization of property value appreciation and timing thereof; the
inventory of mixed-use properties; competition from developers of
mixed-use properties; the Jersey City,
New Jersey real estate market; government legal and
regulatory changes; property encumbrances relating to the Project;
significant fixed expenditures and fees in connection with the
maintenance, operation and administration of the Project; closing
and other transaction costs in connection with the acquisition and
disposition of the Project; the availability of mortgage financing
and current interest rates; revenue shortfalls; assumptions about
rental growth rates in the U.S. mixed-use real estate market,
demographic trends and the markets in which the Trust intends to
operate; fluctuations in interest rates; litigation risks; the
relative illiquidity of real property investments; the U.S.
economic environment; the geographic concentration of the Trust's
business; demand levels for mixed-use properties in Jersey City and local economic conditions;
negative geopolitical events; public health crises; the capital
structure of the Trust; distributions; capital depletion; foreign
currency exchange rates and assumptions related thereto; potential
conflicts of interest; reliance on the good faith and ability of
the manager of the Trust to manage and operate the Project;
reliance on other third-party property management companies; the
limited operating history of the Trust; the limited experience of
management of the Trust with respect to managing a reporting
issuer; the limited liquidity of the Units; and tax laws. While
management of the Trust considers these assumptions to be
reasonable based on currently available information, they may prove
to be incorrect.
Although management believes the expectations reflected in such
forward-looking statements are reasonable and represent the Trust's
internal projections, expectations and beliefs at this time, such
statements involve known and unknown risks and uncertainties that
may be general or specific and which give rise to the possibility
that expectations, forecasts, predictions, projections or
conclusions will not prove to be accurate, that assumptions may not
be correct and that objectives, strategic goals and priorities may
not be achieved. A variety of factors, many of which are beyond the
Trust's control, could cause actual results in future periods to
differ materially from current expectations of estimated or
anticipated events or results expressed or implied by such
forward-looking statements. Such factors include the risks
identified in the Trust's final prospectus, including under the
heading "Risk Factors" therein. Readers are cautioned against
placing undue reliance on forward-looking statements. Except as
required by applicable Canadian securities laws, the Trust
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
SOURCE West Side Square Development Fund