Operational performance at Greenscape's Canopy Airport Parking ("Canopy") investment, which is a state of the art 4200 stall green parking facility that services the Denver International Airport, continues to exceed budgeted revenues. The facility was built on time and on budget in 2010.
The facility funding was arranged by Greenscape during a time of exceptionally difficult real estate financing markets and as such is heavily leveraged. Substantial portions of the debt related to the construction of the facility have been personally guaranteed by insiders of Greenscape and large shareholders in the company. This leverage allowed the facility construction when relatively few projects of this size were being built in the sector.
Due to the operational success at the facility combined with this significant leverage the associated debt servicing costs within Greenscape, the company has engaged Capital West Partners to provide advice on optimizing the value of this investment. Options being evaluated include selling the facility and monetizing the return on this investment earlier than originally targeted. To this, Capital West Partners has prepared a Confidential Information Memorandum ("CIM") and is circulating this amongst targeted and select groups of potential purchasers of the facility including real estate investment groups, pension funds, infrastructure funds and parking corporations. Initial interest received by Capital West Partners from prospective purchasers has been strong, driven by Canopys potential for strong consistent cash flow over the long term.
During this process, Greenscape management has started to look at various potential business opportunities to pursue post any proposed sale including, but not exclusive to, opportunities outside its current core business focus. Greenscape will update the public on any such developments if they become material. Greenscape's management team and board have a variety of industry experience including, but not limited to, the resource sector. The goal of Greenscape management is to be able to act quickly, re-deploying the potential profits from a potential sale of Canopy into new opportunities. Any potential sale of Greenscapes interest in Canopy would be subject to all applicable regulatory approvals.
In addition to Greenscape's investment in Canopy Airport Parking, the company owns 12.6% percent of Captherm Systems ("Captherm"), funded by a fully paid for investment into Captherm of CAD $600,000. Greenscape is working with Captherm to explore options for Captherm to find alternative sources of future financing and, in that context, potentially monetizing Greenscape's investment.
As Greenscape looks at business opportunities outside of its current sector of focus and as the company pursues the monetization of Canopy, Mr. Bradley N. Scharfe has been appointed as Chief Executive Officer. Mr. Scharfe is a major shareholder of the company, has personally guaranteed various corporate loans received and is one of the founders. Concurrent with this, Mr. Mark Devereux has resigned as Chief Executive Officer and from the Board of Directors. The company thanks Mr. Devereux for his leadership and guidance leading up to this transition phase and wishes him well in all future endeavors.
About Capital West Partners
Established in 1990, Capital West is an independent corporate finance advisory firm based in Vancouver, British Columbia. Capital West provides specialized financial advice and expertise to publicly and privately owned corporations in North America on mergers, acquisitions, divestitures and other strategic transactions. Capital Wests team of professionals has extensive experience in executing transactions for North American infrastructure assets. Capital West is a member of IMAP, an integrated global organization of independent corporate finance advisory firms comprising 39 firms in 30 countries.
Greenscape Capital Group increases environmental sustainability, social responsibility, and profitability of companies and their operations. Greenscape is focused on dramatically increasing the profitability of commercial facilities through enhanced energy efficiency and environmental best practices. When opportunities arise, Greenscape also invests in other companies that operate in the environmental space, providing strategic capital and business advisory services to assist companies in achieving their environmental and corporate goals.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, no assurance can be given that the Canopy Parking Facility will be sold and no assurance can be given that bids for the lot will meet expected and acceptable figures for Greenscape Capital.