Presidential RealtyCorp. and First CapitalReal Estate Trust Inc. executed a letter of intent under which the formeris proposing to acquire substantially all of the assets of First Capital in exchangefor Presidential Realty's newly issued shares.

First Capital CEO Suneet Singal said in a statement that theproposed deal advances the company's liquidity plan for shareholders that was outlinedin its strategic partnership with Forum Partners.

The proposed deal is subject to approvals by the respective boardsof both the companies and approval of final terms by First Capital shareholders,among other things.