WINNIPEG, Sept. 12 /CNW/ - Temple Real Estate Investment Trust ("TREIT")
(TSX Venture: TR.UN) announced it has agreed to acquire the Capri Centre, a
full service hotel, trade and conference centre, located in Red Deer, Alberta
for $40 Million, subject to the usual closing adjustments. The property is
situated on a 10.7-acre parcel of land at the intersection of 32nd Street and
Gaetz Avenue (50th Avenue). Red Deer is located on Highway 2, midway between
Calgary and Edmonton, the most heavily travelled north-south route in Alberta.
The 14-storey Capri Centre features the following amenities:
- 218 guestrooms, including 22 suites, which feature eight two-storey
one-bedroom and two-bedroom suites.
- Three restaurants and three lounges.
- Complete conference, meeting and tradeshow facilities consisting of
16 meeting rooms totalling 53,110 square feet, with the largest room
able to accommodate up to 1,000 people.
- On-site parking for over 1,200 vehicles.
- Outdoor heated swimming pool, indoor whirlpool and exercise room.
- Leased gift shop, clothing store and hair salon.
- Freestanding liquor store operated by the hotel.
TREIT will undertake an $8 Million capital expenditure program over
approximately 12 months, consisting primarily of refurbishment of the rooms.
TREIT expects to license the hotel with the Sheraton brand name in 2009. In
addition, there is the potential for approximately 2.24-acres of land that is
currently used for parking to be redeveloped with commercial retail units.
The total investment in the hotel of $48 Million, including
refurbishment, represents a projected capitalization rate of 13.8% and will be
financed with a first mortgage loan in the amount of $28.8 Million, a vendor
take-back mortgage in the amount of $5 Million and the balance from TREIT's
existing cash resources. The first mortgage loan will bear interest at an
estimated rate of 6% for a five-year term and will have a 15-year
amortization. The vendor take-back mortgage will also bear interest at 6% and
have a five-year term and 15-year amortization. The acquisition is scheduled
to close on November 1, 2008.
TREIT is a real estate investment trust, which is listed on the TSX
Venture Exchange under the symbol TR.UN. The objective of TREIT is to provide
Unitholders with stable cash distributions from investment in a geographically
diversified Western Canadian portfolio of hotel properties and related assets.
There are currently 12,532,828 trust units outstanding. 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.
For further information:
For further information: Arni Thorsteinson, Chief Executive Officer, or
Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505,