FOG CUTTER CAPITAL GROUP INC. ANNOUNCES ADDITIONAL INVESTMENT IN BARCELONA REAL ESTATE
October 25, 2005
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FOR:
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FOG CUTTER CAPITAL GROUP INC.
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CONTACT:
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Fog Cutter Capital Group Inc.
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(503) 721-6500 R. Scott Stevenson, CFO
(503) 721-6500 David Dale-Johnson, Chief Investment Officer
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For Immediate Release
FOG CUTTER CAPITAL GROUP INC.
ANNOUNCES
ADDITIONAL INVESTMENT IN BARCELONA REAL ESTATE
PORTLAND, Oregon.— October 25, 2005 -- Fog Cutter Capital Group Inc. (OTC Pink Sheets: FCCG) announced that it has completed the acquisition of a 24 unit apartment building in Barcelona, Spain. The total acquisition and budgeted improvement cost on this transaction is $8.1 million (6.8 million euros). This represents the fourth such investment by the Company in the Barcelona real estate market over the last 18 months.
The current acquisition brings the total number of units owned by the Company to 58 apartments in four separate properties. The Company’s strategy is to relocate existing tenants, improve the common areas and sell the units as individual condominiums. The acquisition and improvement costs for these projects total approximately $16.3 million (13.6 million euros). The projects have been funded through a combination of local (Spanish) bank financing and capital contributions from the Company and a minority partner / property manager.
The most recent acquisition is located at the south end of the Bernardi Mantorell development in the Ravel neighborhood of Barcelona. The property faces a five star hotel that is under construction and is adjacent to the Rambla del Ravel. “This is an extremely well-located property in one of the hottest urban real estate markets in the world,” explained Fog Cutter Chief Investment Officer, David Dale-Johnson. “Our earlier investments are now coming onto the market and we are delighted that our partners in Barcelona have been able to identify this new opportunity for us.”
The business strategy of Fog Cutter Capital Group consists of developing, strengthening and expanding its restaurant and commercial real estate mortgage brokerage operations and continuing to identify other financing opportunities with favorable risk-adjusted returns. The Company also seeks to identify and acquire controlling interests in operating businesses in which it can add value. The Company’s operating segments consist of (i) restaurant operations conducted through Fatburger Holdings, Inc., (ii) commercial real estate mortgage brokerage activities conducted through George Elkins Mortgage Banking Company and (iii) real estate, merchant banking and financing activities.
Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the company which are identified as forward-looking, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. Such factors include but are not limited to, effectiveness of operating initiatives; success in advertising and promotional efforts; changes in global and local business and economic conditions, including their impact on consumer confidence; fluctuations in interest rates and to a lesser degree currency exchange rates; food, labor and other operating costs; competition, including pricing and marketing initiatives and new product offerings by the Company’s competitors; consumer preferences or perceptions concerning the Company’s product offerings; spending patterns and demographic trends; availability of qualified personnel (including restaurant personnel); severe weather conditions; existence of positive or negative publicity regarding the Company or its industry generally; the real estate market; the availability of real estate assets at acceptable prices; the opportunities in the specialty lending market; the creditworthiness and default experience of the Company's borrowers; the availability of financing; interest rates; European markets; effects of legal claims or Nasdaq or government investigations; cost and deployment of capital; changes in future effective tax rates; changes in governmental regulations; the impact of changes in management and changes in applicable accounting policies and practices. The foregoing list of important factors is not all-inclusive. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements have not been audited by, examined by, or subjected to agreed-upon procedures by independent accountants, and no third party has independently verified or reviewed such statements. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the company or any other person that the forward-looking statements contained in this release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
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