LAKEWOOD, N.J., Oct. 02, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Reliance Global Group, Inc. (OTC: RELI) ("RELI" or the "Company"), today announced Reliance Global Holdings LLC, ("Reliance LLC"), RELI's affiliated privately-owned LLC, has executed the purchase and sale agreement to acquire two contiguous Class A multi-family properties for a total purchase price of $42.5 million, following the signing of the letter of intent, as previously announced on August 19, 2019.
The properties consist of approximately 260 apartment units located in a strong market on the East Coast. The first phase of construction, which consists of 117 units, was completed in 2017, and is 97% occupied. The second phase of construction, consisting of 143 apartment units, is expected to be completed mid-2020, and all of the completed units have been pre-leased, subject only to total completion of construction.
As previously announced, Reliance Global Holdings, LLC transferred $250,000 to RELI, which has been used as the initial down payment due upon execution of the purchase agreement; that $250,000 has now been transferred by RELI to the escrow agent, in anticipation of the closing of the purchase.
Closing of the purchase of the properties is subject to satisfactory completion of final due diligence, and bank financing, which is in progress. Upon completion of the acquisition, RELI anticipates completing an SEC-compliant audit of these multi-family properties, to enable them to become a component of the Company's assets and business, when RELI becomes a SEC-reporting issuer again.
If for any reason the SEC-compliant audit is delayed, after the acquisition of the properties by Reliance LLC, it is nevertheless RELI management's clear intention to cause Reliance LLC to contribute to RELI the ongoing profits generated by these two properties, on a permanent basis. Upon completion of the audit Reliance LLC will then contribute the properties to RELI.
Ezra Beyman, CEO of RELI, stated, "We are pleased to announce execution of the purchase and sale agreement to acquire these premier properties, and will provide further updates upon completion of the transaction. We were attracted by the high occupancy rate and job growth in the area. Overall, we remain extremely encouraged by the outlook for the business as we aggressively build our portfolio of undervalued properties with sustainable cash flows in attractive markets."
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (OTC PINK: RELI) is moving forward with its goal to operate as a holding company in the real estate and insurance brokerage sectors, and potentially other sectors. RELI's focus continues to be to grow the Company by pursuing an aggressive growth strategy of acquisition opportunities, including both real estate and insurance agencies. Insurance agencies, as opposed to insurance carriers, bear no insurance risk. The Company is controlled by Reliance Global Holdings, LLC, a New Jersey-based limited liability company, which is the owner and operator of numerous companies with core interests invested in real estate and insurance brokerage.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.