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Citadel EFT, Inc. (CDFT) Agrees to Assign Contract of Purchase & Sale of Property in the Dominican Republic
By: Marketwired .
Jan. 24, 2013 12:36 PM
OCEANSIDE, CA -- (Marketwire) -- 01/24/13 -- Citadel EFT, Inc's. (OTCQB: CDFT) CEO Gary DeRoos is pleased to announce that Citadel EFT has agreed to an assignment of a contract of purchase & sale of villa 613, in the Casa Linda development, in Cabarete, Dominican Republic. The villa was the last property for sale in phase 6 in the development, which currently boasts up to a 95% occupancy rate and weekly incomes of $2500 on its 4 bedroom villas. This property is completely built, ready to rent upon completion, and is approximately 10,000 square feet, with 5 bedrooms and 6 bathrooms. This property represents an attractive rental opportunity to Citadel and its shareholders.
The Dominican Republic (DR) is the number one resort destination in the Caribbean, with their Puerto Plata region of the DR, experiencing tremendous growth because of the increased demand for rentals in the area. During peak season the villas are rented for upwards of $10,000 to $12,000 per month, and non-peak seasons, half those numbers.
The Company bought the assignment by agreeing to issue Convertible 'C' Preferred Shares once an appraisal is done on the property. Upon completion, the title will be transferred to Citadel EFT. The original owners of the property were pleased to make the transaction, because of the tax benefits that they would enjoy in earning dividends off the rental incomes, backed by the aforementioned class of securities, and because of Citadel EFT's current financial condition, and its future prospects. One of the two majority shareholders of the company, that bought the villa prior to its build out, Mr. Bash Ahmed, felt that the transaction was more like making an investment in Citadel EFT. He said that the rental opportunity was tremendous, and that there was room to purchase more property in the next phase of Casa Linda's development. This transaction would open the door to even more collaboration to increase Citadel's portfolio.
Gary DeRoos, CEO, of Citadel EFT, further states, "We bought the assignment because there was $200,000USD in equity already in the property, with an additional $30,000USD in improvements that have been already paid by the owners of the contract. There is no debt on the property, no liens of any kind, and the balance owing to pay it off, furnish it and take possession of the title deed is a paltry $75,000USD. We feel the asset, upon an appraisal, will be attractive on the balance sheet and the rental income provides Citadel with a great opportunity to issue dividends immediately when its cash flowing, to the Preferred 'C' shareholders."
He further states, "The location of the development, and the relative stability of the Dominican Republic as a growing getaway vacation spot made this decision easy. The developers, own the property next door, there are over 600 properties in this development at nearly full occupancy, and they manage the rental pool, so that it is turn-key for us. We are not in the business of managing rental properties; we are in the business of buying income without the high cost of transacting for the business.
Management of the Company would disclose the final details of this transaction, pending an appraisal and transfer of the title deed. This property acquisition is going to be an all stock transaction for the contract. But until management knows the true book value of this property, the details of the amount of Convertible Preferred 'C' shares cannot be disclosed until completing the closing of this real-estate transaction. CDFT believes closing will occur in March, 2013.
For more information on the development, CDFT encourage its shareholders to visit the developers' website at www.casalindacity.com. If anyone wishes to view pictures of the finished property, they can email Gary Deroos, directly at firstname.lastname@example.org.
About Citadel EFT, Inc:
Based in Oceanside, CA, Citadel EFT, Inc., provides credit card merchant account services to retailers, mail order companies and online service providers. The Company provides a free terminal to the business owner and charges no yearly fees, monthly minimums, statement, or address verification fees. Citadel markets its services directly and also through resellers.
FORWARD LOOKING STATEMENT
CDFT cautions that the statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.
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