Message #7 From:
Stock News Bot Date: August 7, 2006 08:48:00 AM
FCCG News Fog Cutter Capital Group Inc. Reports Sale of Barcelona Investment Property
PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 7, 2006--Fog Cutter Capital Group Inc. (OTC:FCCG) reported today that it has sold the 14 unit Tapioles apartment building located in Barcelona, Spain in a transaction that valued the apartment building at 2.84 million euro (approximately $3.6 million).
The Tapioles property was the second of four apartment buildings in Barcelona that Fog Cutter has invested in over the last two years. The Company's strategy is to relocate existing tenants, improve the ability to receive current market rate rents and re-sell the buildings to end-user developers. The acquisition and improvement costs for the four projects totaled approximately 13.6 million euro ($16.0 million). The projects were funded through a combination of local (Spanish) bank financing, U.S. lenders and capital contributions from the Company and a minority partner / project manager. In November 2005, the Company sold the 10 unit Rierta apartment building, its first Barcelona property.
With the sale of the Tapioles property, Fog Cutter continues to hold 34 apartment and retail units in two separate locations in Barcelona.
The business strategy of Fog Cutter Capital Group consists of developing, strengthening and expanding its restaurant and commercial real estate mortgage brokerage operations and continuing to identify other financing opportunities with favorable risk-adjusted returns.
Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the company which are identified as forward-looking, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. Such factors include but are not limited to, effectiveness of operating initiatives; success in advertising and promotional efforts; changes in global and local business and economic conditions, including their impact on consumer confidence; fluctuations in interest rates and to a lesser degree currency exchange rates; food, labor and other operating costs; competition, including pricing and marketing initiatives and new product offerings by the Company's competitors; consumer preferences or perceptions concerning the Company's product offerings; spending patterns and demographic trends; availability of qualified personnel (including restaurant personnel); severe weather conditions; existence of positive or negative publicity regarding the Company or its industry generally; the real estate market; the availability of real estate assets at acceptable prices; the opportunities in the specialty lending market; the creditworthiness and default experience of the Company's borrowers; the availability of financing; interest rates; European markets; effects of legal claims or Nasdaq or government investigations; cost and deployment of capital; changes in future effective tax rates; changes in governmental regulations; the impact of changes in management and changes in applicable accounting policies and practices. The foregoing list of important factors is not all-inclusive. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements have not been audited by, examined by, or subjected to agreed-upon procedures by independent accountants, and no third party has independently verified or reviewed such statements. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the company or any other person that the forward-looking statements contained in this release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
