SHIJIAZHUANG, China-- Prime Acquisition Corp. (“Prime” or the “Company”) (OTCQB: Common Stock: “PACQF”, Units: “PAQUF”, Warrants: “PAQWF”) today provided an investor update on the status of its real estate operations and on its growth initiatives and strategy.
- Prime owns and manages a portfolio of 10 properties in Milan, Italy, and the surrounding areas
- Properties consist of office, logistics, commercial and industrial assets
- Total gross leasable area of 27,040 square meters with 98% occupancy rate by area
- Stable tenant profile with 10-year average lease duration
- Favorably renegotiated banking/leasing arrangements
- Cancelled the last remaining dilutive agreements with former shareholders
- Sold non-performing assets
- Expanded staff in Italy with a focus on in-house maintenance and regional lender competencies
Strategy and Outlook for 2016
Prime is optimistic about the European real estate industry in 2016, particularly with respect to opportunities in the Milan area. According to a joint report published by the Urban Land Institute and PricewaterhouseCoopers in January 2016, investor sentiment is expected to remain positive toward the sector in 2016. The report ranked Milan as no. 8 of the top 10 European cities for existing property investments in 2016, up from its 2015 ranking of no. 12. Factors such as technology, demographics and social change present potential disruptions to evenly distributed growth. The Company views those disruptions as being closely tied to the rise of e-commerce as a part of European daily life, a trend already well established in the U.S. In concert with this trend, the Company is turning its attention in 2016 to strategically expanding its footprint with a focus on e-commerce tenant properties.
The Company views additional aggregate upside as being driven by a combination of macro and micro factors, including European Central Bank monetary policy supporting asset price appreciation and widening yield spreads, and the Company’s own existing high-value footprint combined with low vacancy rates that support organic top line growth.
Mr. William Yu, interim Chief Executive Officer and Director of Prime, stated, “Over the past several months, our management team has worked diligently to reorganize the Company with minimal dilution to current shareholders while positioning the business for long-term growth. We have been successful in negotiating favorable financing terms with banks and leasing companies, which we believe establishes a firm foundation from which to expand our footprint and cash flows. We are focused on making accretive acquisitions that provide both immediate income and have attractive upside. As we continue to transition Prime, our goal in 2016 is to increase our penetration in high-quality commercial properties with a focus on serving the e-commerce industry.”
About Prime Acquisition Corp.
Prime Acquisition Corp. is a Cayman Islands company that owns and operates office, commercial and industrial properties in Italy. Prime is focused on building a portfolio of high yield-producing assets.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Prime Acquisition Corp. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Prime’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:
• Continued compliance with government regulations;
• Changing legislation or regulatory environments;
• Requirements or changes affecting the businesses in which Prime is engaged;
• Industry trends, including factors affecting supply and demand;
• Labor and personnel relations;
• Credit risks affecting the combined business’ revenue and profitability;
• Changes in the Italian real estate industry;
• Changing interpretations of generally accepted accounting principles;
• General economic conditions; and
• Other relevant risks detailed in Prime’s filings with the Securities and Exchange Commission.
The information set forth herein should be read in light of such risks. Prime does not assume any obligation to update the information contained in this press release.
Prime Acquisition Corp.
+39 02 89773668
Source: Prime Acquisition Corp.