WINNIPEG, June 13, 2012 /CNW/ - Temple Real Estate Investment Trust
("Temple REIT") (TSX-V: TR.UN) announced today it has agreed to acquire
the Hilton Garden Inn West Edmonton (the "Hotel") for $31 million,
subject to the usual closing adjustments. The 6-storey Hotel opened in
2004 and is located at 17610 Stony Plain Road in close proximity
Edmonton's West End Business District and just minutes from the West
Edmonton Mall, Edmonton's number one tourist destination. The Hotel is
ideally suited for both business and leisure travel.
The Hotel contains 160 guestrooms with one king bed or two queen beds,
including 5 executive suites that have a private seating area, Jacuzzi
tub and two-way fireplace. Other amenities offered by the Hotel
4,049 square feet of banquet and meeting space;
heated indoor pool, whirlpool and fitness room;
restaurant and lounge under lease to tenant/operator;
206 surface parking spaces; and
Other facilities include a market pantry, business centre, guest laundry
facilities and vending area.
Temple REIT will undertake a $2 million capital expenditure program over
approximately18 months, consisting primarily of guest room and
Based on the 2012/13 forecasted net income, the total investment in the
Hotel of $33 million, including capital expenditures, represents a
capitalization rate of approximately 10.31%. The acquisition will be
financed with a first mortgage loan in the amount of $22 million and
the balance in cash. The first mortgage loan will bear interest at an
estimated rate of 5.3% for a three-year term and will have a 25-year
amortization. The acquisition is scheduled to close on August 1, 2012.
Temple REIT is a real estate investment trust, which is listed on the
TSX Venture Exchange under the symbols TR.UN (trust units), TR.DB.A,
TR.DB.B, TR.DB.C, TR.DB.D and TR.DB.S (convertible debentures). The
objective of TREIT is to provide Unitholders with stable cash
distributions from investment in a diversified portfolio of hotel
properties and related assets. For further information on TREIT,
please visit our website at www.treit.ca.
This press release contains certain statements that could be considered as forward-looking
information. The forward-looking information is subject to certain
risks and uncertainties, which could result in actual results differing
materially from the forward-looking statements.
The TSX Venture Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy
or accuracy of this press release.
SOURCE Temple REIT
For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: email@example.com