Birmingham, MI / ACCESSWIRE / December 17, 2014 / ProGreen Properties, Inc. (ProGreen) (OTCQB: PGEI), has agreed on a joint venture with American Residential Gap LLC (ARG), a wholly owned subsidiary of American Residential Fastigheter AB (AMREFA) in Sweden, with which ProGreen has existing property financing arrangements. As per the agreement, ARG and ProGreen will jointly acquire primarily distressed residential properties in Michigan, with ARG providing 100% of the funding. Properties to be acquired will be, SFRs suitable to be converted into be rental homes, SFRs to be refurbished, upgraded and sold, and land for construction of New Homes.
ProGreen Construction LLC (a wholly owned subsidiary) will be responsible for refurbishment and construction of the properties, and ProGreen Realty LLC (a wholly owned subsidiary) will be the responsible broker for all purchases, sales and leasing.
Properties to be leased are to be appraised once leased, according to an agreed rental return formula and ProGreen's share in the property, representing 50% of the resulting profit, will then be sold to ARG for cash. All rental properties will continue to be managed by ProGreen Property Management LLC (a wholly owned subsidiary).
With properties refurbished and sold in the open market, as well for new construction, profits will be shared equally between ARG and ProGreen and disbursed accordingly upon completion of sale.
"We are very excited about the recent turn of events, with this new joint venture as well as with ARG now having a funding agreement in place with a local bank, which considerably increases ARGs financial capacity for larger acquisitions," says Jan Telander, President & CEO.
Under the existing agreement with AMREFA referred to above, ARG acquired two more properties from ProGreen on October 1.
About ProGreen Properties, Inc.:
ProGreen Properties, Inc. (ProGreen) (OTCQB: PGEI) based in Birmingham, Michigan, is engaged in the business of acquiring, refurbishing and upgrading residential real estate into modern affordable homes, with some being aimed at the local real estate market and some being leased and subsequently sold to European Property Investors.
ProGreen believes that Michigan offers some of the best investment opportunities in the US residential property market.
ProGreen Wholly Owned Subsidiaries:
ProGreen Realty LLC, purchasing, leasing and sale of properties.
ProGreen Property Management LLC, management of properties sold to investors.
ProGreen Construction LLC, in house construction company.
This press release contains statements, which may constitute 'forward-looking statements' within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. 'Forward-looking statements' are based upon expectations, estimates and projections at the time the statements are made that involve a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from those anticipated.
CONTACT:
Jan Telander, President & CEO
Phone: (248) 805-3652
Fax: (248) 731-7407
Email: [email protected]
www.ProGreenProperties.com
SOURCE: ProGreen Properties, Inc.