Corporate Profile ProGreen Properties, Inc. (ProGreen) (OTCQB-PGEI) is based in Birmingham, Michigan. ProGreen is engaged in the business of acquiring, refurbishing and upgrading potential income-producing residential real estate. ProGreen believes that Michigan offers some of the best investment opportunities in the presently distressed US property market.
ProGreen's business model is to acquire, refurbish and upgrade existing properties into more energy efficient, comfortable and healthier living spaces so that they meet standards that exceed, what is often the norm for most single family homes, condominiums and apartments.
ProGreen's Business Model
ProGreen's business model is to acquire, refurbish and upgrade existing properties into more energy efficient, comfortable and healthier homes that are leased to suitable tenants, who are willing to pay more, in order to live in a ProGreen property. We can already see an exceptional tenant loyalty, with most tenants renewing leases. ProGreen is offering professionally managed condos and houses of exceptional standards, with only a minimal competition in the market place.
As a result of high demand and very limited competition, ProGreen rental properties are yielding very high returns. This has created the opportunity for ProGreen to offer for sale to European investors, fully managed income producing residential real estate, producing returns that far exceed what is the norm in Europe, and still keep healthy margins as well as maintaining the property management.
ProGreen and European Investors
ProGreen aims to create good cash flow and profitability, by offering refurbished, leased income producing properties to European investors.
In April 2012, ProGreen entered into an agreement with American Residential Gap ApS (ARG) (Denmark), to acquire fully managed and leased investment properties from ProGreen. The first sale was closed on April 30, 2012 and even though, further sales to this group, has been less than initially expected, ARG have continued to purchase properties from ProGreen, with the last sale closing on March 1, 2013.
We are also seeing interest from other European investors for our investment properties. On March 10, ProGreen signed a Memorandum of Understanding (MOU) with the management for Futura Fastigheter AB (Futura) (Sweden). Representatives from Futura came to visit us as part of their due diligence process. The definitive agreement is expected to be signed before the end of April. The MOU outlines a future cooperation between the parties, where ProGreen is to provide income producing properties, previously refurbished and leased out by ProGreen to Futura. Futura will also, under the MOU, provide financing to ProGreen in order for ProGreen to be able to increase the activity and accelerate acquisitions. Futura will finance the total cost of ProGreen's acquisition and refurbishment, for properties to be purchased once leased by Futura. This financing gives ProGreen the ability to quickly increase its activity, without having to seek any outside funding. The first tranche of funding, which will be up to $3,000,000, is expected to close before the summer.
All properties are purchased and marketed exclusively through ProGreen Realty LLC and will continue to be managed by ProGreen Property Management LLC. Both companies are wholly owned subsidiaries to ProGreen.
As of now, we are primarily focusing on well sought after areas within Oakland County (fourth richest county in the US), with safe residential communities and sought after school districts.
ProGreen's management is expected to grow over the coming months. Please click on "The Team" to learn more about ProGreen's management.
