DALLAS, July 22, 2013 /PRNewswire/ -- Mr. Jeff Love, Chairman of LIG Assets, Inc. (OTCPK: LIGA) and its subsidiary companies, announces the following statements to further clarify its business plan, provide a summary of current projects, and discuss its focus for the balance of 2013.
- LIG Assets, Inc. maintains its inventory of about 235 residential real estate properties located in Texas. The Company is in good standing with its lenders, and the properties continue to generate positive cash flow. FP Management Group, LLC, property manager and largest lender to LIG Assets, Inc. provided a letter dated July 15, 2013 "to further affirm the information regarding the properties and the debt thereon" referencing the Attorney Letter with Respect to Current Information for LIG Assets dated June 6, 2013. A copy of this letter will be provided upon request. LIGA's net real estate holdings are conservatively valued at over $7.5 million.
- LIG Assets has identified at least two people that the Company plans to add to its Board of Directors. The Company plans to issue a formal announcement soon when each person officially accepts a position. LIG Assets continues to prepare its financials so it can be audited.
- Late last year, a Strategic Alliance was formed with Texas Real Estate Hedge Fund, LP, MMR Realty Advisors, and InterContinental Real Estate Partners to focus on commercial properties including multifamily, retail, hotel, and office. The Strategic Alliance as well as relationships with other hedge funds and investors provides LIG Assets access to capital so it can be involved in the commercial real estate market with property valuations between $1 million and $100 million. Although these projects take longer to develop, LIG Assets expects several large transactions to be consummated by year end. A summary of current real estate projects is included in this press release.
- The goal for the majority of the commercial real estate projects is to purchase them for a quick turnaround through sale or leaseback. LIG Assets has identified several new sources that are interested in buying its properties. LIG Assets plans to update its list of current projects quarterly to show which projects were completed, which projects are still being worked on, and which projects are no longer possibilities.
- On June 18, 2013, it was announced that LIG Assets sold its contract rights for its role in the hotel casino transaction in Cripple Creek, CO. The sale of these rights was made to a privately owned REIT. Proceeds from the sale of these rights have not been received yet, but are expected soon.
- The office in Austin is led by new management, and our belief is that a major breakthrough is imminent that should enable this office to produce on its deal flow. A list of possible transactions associated with this office is also included below.
- LIG Assets also owns a wholly owned subsidiary called LIG Entertainment Management, Inc. and has funded two movies. "HOA Havoc – The Movie" has been completed, and management is currently negotiating for the sale of the movie. Several offers are currently under review, and a sale is expected within 30 days. Its other movie, "The Water's Edge" is in the process of completion. Since this business is not the Company's focus, management plans to use part of the proceeds from sales to execute a share buyback plan. Management believes the current share price of LIGA stock does not nearly reflect its net assets value or potential earnings.
- LIG Assets also owns the majority of South American Properties, Inc. (OTCPK: SAMP) that focuses on real estate transactions outside the United States. LIG Assets plans to eventually issue a stock dividend of common shares of SAMP to LIGA shareholders. South American Properties has two projects that are moving forward. First, Colan Marina is intended to be a full service luxury marina near the Port of Paita in northern Peru. Development of the marina includes 150 slips, dry dock facilities, maintenance and fuel services, as well as 24-hour security. It will be man-made and created by the excavation of a salt flat bordering the Emerald Bay Beach on the west and 100-foot cliffs on the east. Second, a casino in the Dominican Republic may be acquired within 30 days.
Summary of Current Projects – Dallas Office
The following is a list of projects that LIG Assets intends to complete this year. For competitive reasons, only general details can be provided. If an investor or interested party wishes to inquire about more specific information, they are invited to contact the Company directly.
Florida Resort – LIG Assets is negotiating for the sale / leaseback of a Mediterranean-style villa resort that offers fully furnished condos valued at over $2.5 million. It is conveniently located a short drive from some of Florida's top attractions like Disney World.
Countertop Manufacturer in Texas – This property valued at over $1.5 million is occupied by a company that has been fabricating and installing countertops (granite, marble, travertine, limestone, soapstone, quartz and solid surface countertops) for both commercial and residential customers for over 20 years. A contract has been signed and we anticipate closing within 45 days.
Hotel in Louisiana - LIG is currently working to find new locations for a hotel chain. Once qualified properties are found and agreed upon they will be purchased and leased to the hotel owner. One property valued at over $3 million in West Monroe, LA has been identified and LIG is in the process of negotiating the contract for this project. In addition to purchasing the hotel there are plans to purchase the adjacent land for new proposed parking. The additional lot will provide parking for semi-trucks and trailers and is anticipated to help generate additional income.
Large Sports and Fitness Center near Dallas – LIG has started to negotiate to identify funding for a 36 acre mixed used development that will incorporate sports and fitness training for athletes and individuals, and provide a venue for sporting events. There are plans for a regulation size football field and soccer field, a fitness and development center, 3 regulation size basketball and volleyball courts and much more. In addition there are plans for retail stores inside the recreation center. The funding amount for the project is approximately $20 million.
Five Additional Hotel Properties for Established Hotel Chain in Louisiana – The purchase price for all five hotel properties in $35 million. LIG is negotiating the contract and is waiting for a counter offer.
Tyler, Texas Hotel – LIG has purchased land in Tyler, Texas and is preparing for construction for a new hotel. An operator for the hotel has already been identified. The operator has expressed interest in locating additional properties and LIG now has three under review.
Almond Ranch in Central California – LIG Assets has signed an MOU to purchase about 3,000 acres of land in the heart of the San Joaquin Valley. Total funding to develop the almond ranch and a biomass plant is nearly $40 million.
Twelve Barbecue Restaurants in Texas – LIG is negotiating for the purchase and lease back of a chain of 12 well-known popular barbecue restaurants located throughout Texas.
Pawn Shops – LIG Assets has formed a partnership with a pawn shop chain to acquire additional locations and lease the properties to the pawn shop.
Terry's Supermarket – LIG Assets acquired one location and leased the property. LIG plans to locate several more properties for Terry's Supermarkets.
Summary of Current Projects – Austin Office
Three Automotive Tire Centers in Texas – LIG has agreed to terms to acquire these properties, and expects to execute the contract any day.
Prison Facility in Wisconsin – LIG may acquire this facility from a private company that is the current owner.
Casino in Cripple Creek – This is a different casino property in Cripple Creek than the one where LIG sold its contract rights. This deal is ready to contract pending final approvals from management
Wakeboarding Extreme Sports Complex – Execution of documents is pending as the owner awaits closing of another deal.
Additional Locations for Large Chains – The Austin office is working with major developers representing well known retail chains throughout Texas. We expect to contract two major sale and leaseback opportunities within the next 60 days, creating a pathway into this market segment.
Summary of Current Projects with Texas Hedge Fund
Office/Warehouse Property – InterContinental Real Estate Partners, MMR Realty Advisors & LIG Assets plans to acquire and broker a 137,000 square foot office/warehouse in Carrolton, Texas in the amount of $8.4MM.
Clarion Hotel – A Clarion Hotel in Shreveport, LA is being purchased and the repositioning strategy will be to include video poker gaming. Additional upgrades and improvements could total $5-6 million. An LOI has been signed and the purchase could take place by the end of July.
About LIG Assets, Inc.
LIG Assets, Inc., based in Dallas, TX, is a Company focused on residential and commercial real estate. Through our Strategic Alliance with Texas Real Estate Hedge Fund, MMR Realty Advisors, InterContinental Real Estate Partners and other funders, LIG Assets has expanded its focus on multifamily, retail, hotel, and office properties with valuations between $1 million and $100 million.
LIG Assets, Inc. trades on the pink sheets under the ticker symbol "LIGA". For additional information, please visit LIG Assets corporate website: www.ligassetsinc.net.
This press release may contain forward-looking statements. The words "believe," "expect," "should," "intend," "estimate," "projects," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's filings, which are on file at www.OTCMarkets.com.
LIG Assets, Inc.
1700 Pacific Ave. Suite 2600
Dallas, TX 75201
SOURCE LIG Assets, Inc.