REALnorth Opportunities Fund announces a joint venture with the Western Canadian Properties Group to develop residential property in Fort St. John, British Columbia

VANCOUVER, May 11, 2015 /CNW/ - REALnorth Opportunities Fund ("REALnorth") announced today that one of its subsidiaries has entered into a joint venture with the Western Canadian Properties Group ("WCPG") to develop approximately 29 acres of residential property (the "Property") in the northwest portion of Fort St. John, British Columbia. The Property is being acquired from a third party vendor for a total acquisition cost of approximately $6.5 million and is expected to close in June 2015. This acquisition is being financed by a combination of: (i) equity of $4.5 million, with REALnorth's subsidiary contributing $4 million; and (ii) vendor take back financing of $2 million for up to a year at an annual interest rate of 6%.

The Property is expected to be developed in several phases, and to generate, in aggregate, approximately 155 single family lots. The first phase has received development approval in principle from the City of Fort St. John for 45 lots. Servicing of these first lots is expected to be completed in early Fall 2015. Conventional construction mortgage financing is expected to be used for servicing of the lots.

WCPG has been an active developer in northeastern British Columbia for several years. While it has several other projects already underway in Fort St. John, this is its only project associated with the development of single family lots.

As the largest city within British Columbia's Peace River Region and being approximately 200 kilometres west of Grande Prairie, Fort St. John is an important commercial centre for Western Canada's oil and gas industry. Located at mile 47 on the Alaska Highway (Highway 97), the city is within an hour's driving time from the Montney formation and within several hours' driving time from the Horn River Basin. Aside from various oil and gas projects, the completion of the new Fort St. John hospital in 2012 and the Province's recent approval of the nearby Site C Dam are contributing to the city's reputation as an economic hub for northeastern British Columbia. Given the confluence of announced and proposed major projects in the region, management believes the city's population is likely to continue to grow at a rate above the national average, which will have a direct positive impact on housing needs.

About REALnorth Opportunities Fund

REALnorth exclusively focuses on Western Canada's north, a region bolstered by rich resources and large projects, to invest on an opportunistic basis in revenue producing real estate assets and development properties which management believes will provide attractive return potential. These properties may include industrial and commercial as well as multi-family and other residential real estate opportunities.  

Additional information relating to REALnorth is available on SEDAR at www.sedar.com.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects REALnorth's current expectations regarding future events. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and similar terms and phrases. In particular, forward-looking statements in this news release include, but are not limited to, statements regarding: the expected timing for the closing of the Property, the expectation of developing the Property in phases; the number of lots expected to be generated for the first phase and in aggregate; the expected date to complete the servicing of the lots comprising the first phase of development; and the expected use of conventional construction mortgage financing to service the lots.  Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond REALnorth's control, that could cause actual results and events to differ materially from those that are disclosed in, or implied by, such forward-looking information. Such assumptions include, but are not limited to, a reasonably stable North American economy and real property market and no unusual weather or other construction delays. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in REALnorth's final prospectus dated December 22, 2014 and under "Risk and Uncertainties" in its Management Discussion and Analysis dated April 30, 2015. The forward-looking information contained herein is made as of the date of this news release and, except as expressly required by applicable law, REALnorth assumes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

SOURCE REALnorth Opportunities Fund

Stephen J. Evans (Chair), REALnorth Opportunities Fund, Suite 910 - 925 West Georgia Street, Vancouver, BC V6C 3L2, Tel: [phone]; Brian R. Canfield (CEO), REALnorth Opportunities Fund, Suite 910 - 925 West Georgia Street, Vancouver, BC V6C 3L2, Tel: [phone]