Edmonton, Alberta – TheNewswire – March 1, 2022 – Yorkton Equity Group Inc. (“Yorkton” or the “Company”) (TSXV:YEG) is pleased to announce that after completing a thorough due diligence and evaluation process, the Company has removed all buyer’s conditions for the acquisition of a 50 unit townhouse portfolio in Fort St. John, British Columbia comprising of two townhouse complexes situated adjacent to each other, that being Shamrock Townhomes (9807 87 Street) and Windsor Estates (8619 99 Avenue) (the “Properties”).  Each townhouse unit is a 2-storey 3-bedroom unit, with one full and one half bathrooms, and a full basement with its own forced-air furnace, hot water tank and full size laundry washer and dryer.  Each townhouse also features a fenced yard and energized parking stalls.  The Properties are situated on a 3.28 acre parcel of land and is strategically located close to all city amenities.

Furthermore, each townhouse has separate utility meters for electricity, natural gas and water, and tenants are responsible for their own utility costs.  The Properties are expected to have low operating costs and are close to full occupancy which is expected to yield a capitalization rate of approximately 6% with room to grow in the coming years. The Company has already received approval by the Canadian Mortgage and Housing Corporation (“CMHC”) with a Certificate of Insurance for mortgage financing and is currently evaluating several financing offers received from institutional lenders. Yorkton’s unencumbered cash reserve fund will be deployed to close on the transaction on or about April 11, 2022. Detailed terms of the purchase will be released after closing.

Ben Lui, President and CEO of Yorkton commented that, “With the addition of this 50-unit townhouse complex to our multi-family rental portfolio, we are continuing our expansion into the interior and northern B.C. rental property market.  We are strategically locking in interest rates on long-term mortgages to enjoy a 3.5% or higher spread between the mortgage rate and the capitalization rate, achieving a Debt Service Coverage Ratio of over 1.4 times.  Given these properties are in good condition and close to full occupancy, which provides for significant upside potential, we anticipate strong positive cash flow and Net Operating Income (“NOI”), which is consistent with our affordable mid-market rental property business model.  We look forward to continuing our accretive acquisitions in the months to come.”

Fort St. John is a city located in northeastern B.C. in the Peace River Regional District. It is the hub for natural gas extraction in northern B.C. that has one of the largest reserves of natural gas in the world and is the principal long-term beneficiary of the $40 billion LNG Canada liquefied natural gas (LNG) project, which is now under construction. The Company believes it to be a market with significant upside potential based on strong population in-migration and job market growth. Fort St. John is the second-largest city in northern B.C. and has a diversified economy with oil and gas, forestry, agriculture, manufacturing, and mining operations. Known as the “energetic city”, Fort St. John has a young and vibrant population with a median age of 31 years, and boasts the highest average household income in all of B.C. According to the Community Profiles Statistics Canada Census, Fort St. John has experienced a steady population growth rate of 15.8% between 2006 and 2016, almost double that in the Peace River Regional District of 8%. It is further projected that there will be a 2.2% annual population growth between 2020 and 2025.

About Yorkton

Yorkton Equity Group Inc. is a growth-oriented real estate company committed to providing shareholders with growing assets through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our geographical focus is in secondary markets in British Columbia with diversified, growing economies, and strong population in-migration. Our business objectives are to achieve stable Net Operating Income (“NOI”) and growing Net Asset Value (“NAV”) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders. Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.

Further information about Yorkton is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR website at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information on Yorkton, please contact:

Ben Lui, CEO – Corporate Office: (780) 409-8228

Yorkton Equity Group Inc. – Shareholder Communications: (780) 907-5263

Email: [email protected]

Forward-looking information

This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of Yorkton. Forward-looking information is based on certain key expectations and assumptions made by the management of Yorkton. Although Yorkton believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Yorkton can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Yorkton disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirement.

   

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