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Calamar Announces Joint Venture With Care Investment Trust Inc.

Wed, Feb 13th 2013 12:13 pm, by kgriffiths

 

Calamar Enterprises Announces Joint Venture withCare Investment Trust Inc. Inc. for Acquisition of Two Senior ApartmentCommunities

Joint Venture forAcquisition of Two Senior Apartment Communities located in WesternNew York

Wheatfield, Feb.7, 2013 /PRNewswire/ -- Calamar, a full service real estateorganization with divisions in construction, development, property managementand investment and financing announced today that effective as of February 1,2013, it entered into a joint venture with Care Investment Trust Inc.(OTCQX: CVTR) ("Care" or the "Company"), a real estateinvestment and finance company that invests in healthcare real estate.  Affiliates of Calamar Enterprises, Inc.("Calamar"), owned 75% by affiliates of Care and 25% by affiliates of Calamar,for the acquisition of two senior apartment communities from affiliates ofCalamar with an aggregate value of $23.3 million. Simultaneously with theacquisition, Calamar has entered into a ten-year management agreement with Carefor the management of the Properties.  Both properties were developed by Calamar within thelast 5 years and had an average occupancy in excess of 95% as of December 2012. 

Calamar contributed the properties to the joint venture inexchange for its 25% ownership interest and Care funded its 75% portion of itsequity investment with cash on hand. The joint venture, through subsidiaries,assumed two loans with an aggregate principal balance of approximately $18.3million, provided by Liberty Bank.

Salvatore (Torey) V. Riso, Jr., Presidentand Chief Executive Officer of Care, stated, "Care is very pleased topartner with Calamar who has established itself as providing highquality, affordable, communities to seniors. We look forward to a rewarding and long termrelationship with Calamar".

Kenneth M. Franasiak, President and ChiefExecutive Officer of Calamar, said, "We are looking forward to a long andmutually beneficial relationship and anticipate future opportunities together".

Transaction Highlights:

-- Establish a strategic relationship with Calamar, anorganization which has been highly successful in owning and operating seniorhousing communities and other real estate assets.

--Acquire two stabilized senior housing apartments in Western New York, through a jointventure with Calamar containing an aggregate 202 units that are well-positionedfor high occupancy and consistent financial performance within theircommunities.

--Expectto receive in excess of a 12% cash on cash return in the first year and 100% ofnet cash flow upon a sale of the properties until achieving a thresholdreturn.  Net cash flows to be sharedbetween Care and Calamar pursuant to a waterfall set forth in the joint ventureagreement.

About Care Investment Trust Inc.

Care Investment Trust Inc. is a real estate investmentcompany that invests in healthcare real estate including assisted-living,independent-living, memory care, skilled nursing and other healthcare andseniors-related real estate assets in the United States of America.

About Calamar Enterprises, Inc.

Calamar is afull-service real estate firm comprised of construction, development, propertymanagement and finance & investment divisions for commercial andlarge-scale residential properties in the Northeast & Midwest regions.

Safe HarborStatement under the Private Securities Litigation Reform Act of 1995

This release contains "forward-looking statements"which involve risks, uncertainties and contingencies, many of which are beyondCare Investment Trust Inc.'s control, which may cause actual results,performance, or achievements to differ materially from anticipated results,performance, or achievements. All statements contained in this release that arenot clearly historical in nature are forward-looking, and the words"anticipate," "believe," "estimate,""expect," "plan," "target," and similarexpressions are generally intended to identify forward-looking statements. Suchrisks are set forth under the captions "Forward-Looking Statements"and "Management's Discussion and Analysis of Financial Condition andResults of Operations" (or similar captions) in Care's most recent AnnualReport on Form 10-K and 10-K/A and its quarterly reports on Form 10-Q, and asdescribed in the Company's other filings with the Securities and ExchangeCommission. Economic, business, funding market, competitive and/or regulatory factors,among others, affecting Care Investment Trust Inc.'s businesses are examples offactors that could cause actual results to differ materially from thosedescribed in the forward-looking statements in addition to those factorsspecified in Care Investment Trust Inc.'s Annual Report on Form 10-K and10-K/A, as well as Care Investment Trust Inc.'s Quarterly Reports on Form 10-Q.Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as to the date of this press release. We cannotguarantee the accuracy of any such forward-looking statements contained in thispress release, and Care Investment Trust Inc. is under no obligation to (andexpressly disclaims any such obligation to) update or alter its forward-lookingstatements, whether as a result of new information, future events or otherwise.

For more information on the Company, pleasevisit the Company's website at www.carereit.com

For more information on Calamar, please visitCalamar's website at www.calamar.com