HALIFAX, Aug. 5 /CNW/ - Holloway Lodging Real Estate Investment Trust
(TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") today announced
that it has entered into a binding agreement for the conditional sale of its
Wingate by Wyndham property in Calgary, Alberta to an arm's length purchaser
for $16.5 million, representing a gain to Holloway. Net proceeds are expected
to be approximately $9.3 million.
The sale is conditional upon, among other things, the purchaser
completing its due diligence investigations of the property and being
satisfied with the results of such investigations by August 17, 2009. Assuming
the satisfaction or waiver of all closing conditions, the transaction is
expected to close in early September 2009.
Glenn Squires, Chief Executive Officer of the REIT said "We are pleased
to be able to sell this property at a gain and will be actively considering
opportunities to redeploy the proceeds in an accretive manner. This
transaction, together with the recent suspension of distributions, will help
Holloway strengthen its balance sheet and improve its capital position."
Holloway is a real estate investment trust focused on acquiring, owning
and operating select and limited service lodging properties and a small
complement of full service hotels primarily in secondary, tertiary and
suburban markets. Holloway currently owns 22 hotels with 2,423 rooms.
Holloway's units and convertible debentures trade on the Toronto Stock
Exchange under the symbols HLR.UN, HLR.DB and HLR.DB.A, respectively.
This press release contains forward-looking information within the
meaning of applicable securities laws. Forward-looking information may relate
to the REIT's future outlook and anticipated events or results and may include
statements regarding the future financial position, property acquisition
strategies and opportunities, business strategy, financial results and plans
and objectives of the REIT. Particularly, statements regarding the completion
of the sale of Wingate by Wyndham Calgary property on the terms described in
the press release, the anticipated net proceeds to the REIT from the
transaction and the REIT's expected use of such net proceeds are
forward-looking statements. In some cases, forward-looking information can be
identified by terms such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "intend", "estimate", "predict", "potential",
"continue" or other similar expressions concerning matters that are not
historical facts. Forward looking-information is subject to certain factors,
including risks and uncertainties, that could cause actual results to differ
materially from what the REIT currently expects and there can be no assurance
that such statements will prove to be accurate. Some of these risks and
uncertainties are described under "Risk Factors" in Holloway's annual
information form dated March 30, 2009 which is available at www.sedar.com. The
REIT does not intend to update or revise any such forward-looking information
should its assumptions and estimates change.
For further information:
For further information: Mr. Glenn Squires, Chief Executive Officer, Mr.
Michael Jackson, President and Chief Operating Officer or Ms. Tracy Sherren,
Chief Financial Officer, (902) 404-3499