OLD BETHPAGE, N.Y., Jan. 22, 2014 (GLOBE NEWSWIRE) -- Power REIT (NYSE MKT:PW) announces that it has executed a term sheet with a large developer of renewable energy projects, pursuant to which Power REIT would acquire the real property on which a substantial solar power generation project is under development. If the project goes forward, Power REIT's investment is anticipated to be approximately $9.5 million.
The developer of the project has significant experience completing developments of this nature. The project is slated to break ground in the first quarter of 2014 and has a target to achieve commercial operation by the end of 2014. There can be no assurances that this schedule will be achieved.
The term sheet provides that the developer and Power REIT will work together exclusively to negotiate definitive, binding agreements. The execution of such agreements is subject to a number of conditions, including the completion by Power REIT of its due diligence review and the achievement of certain late-stage development milestones.
David Lesser, Power REIT's Chairman and CEO commented, "I believe that the contemplated transaction, if completed, would represent a compelling risk-adjusted return on Power REIT's invested capital. Similar to other recent acquisitions of ours, we believe that the rental payment stream is highly predictable, given that the prospective tenant would be investing more than 15 times the amount we would be investing, and that the improvements on our land would be uneconomic to relocate. In addition, we believe that the steps contemplated in the term sheet represent a prudent way forward to bridge the remaining project development risk. The transaction would be accretive to our common stock from day one and would be consistent with Power REIT's strategy to create shareholder value."
Power REIT also announces the resignation of Arun Mittal as Executive Vice President, Secretary and Treasurer who has decided to pursue other interests effective February 28, 2014. David Lesser, Power REIT's Chairman and CEO, will assume the titles of Secretary and Treasurer. Mr. Lesser commented, "We appreciate Mr. Mittal's service and accomplishments with respect to Power REIT and wish him the best as he pursues his future endeavors."
About Power REIT:
Power REIT is a real estate investment trust focused on the acquisition of real estate related to infrastructure assets, with a core focus on renewable energy assets. Power REIT is actively seeking to expand its real estate portfolio within the renewable energy sector and is pursuing investment opportunities within solar, wind, hydroelectric, geothermal, transmission and other infrastructure projects that qualify for REIT ownership.
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