/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
VANCOUVER, Aug. 31, 2015 /CNW/ - American Hotel Income Properties REIT
LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) announced today additional gross proceeds
of approximately Cdn$4.3 million from the completion of the partial
exercise of the over-allotment option (the "Over-Allotment Option") in connection with AHIP's recently completed public offering (the "Offering") of 3,800,000 limited partnership units (each a "Unit"), on a bought deal basis, at a price of Cdn$10.15 per Unit. The
underwriters have purchased a further 425,000 Units pursuant to the
Over-Allotment Option increasing the total gross proceeds from the
Offering to approximately Cdn$42.9 million. The Offering, including the
Over-Allotment Option, was fully described in AHIP's short form
prospectus dated August 5, 2015 (the "Prospectus"), which is available on SEDAR at www.sedar.com.
The Offering was conducted through a syndicate of underwriters co-led by
Canaccord Genuity Corp. and National Bank Financial Inc., and included
CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital
Inc., TD Securities Inc., Haywood Securities Inc., Dundee Securities
Ltd. and Industrial Alliance Securities Inc.
As described in the Prospectus, AHIP intends to use the net proceeds of
the Offering to: (i) partially fund the acquisition of a strategic
portfolio of five railway lodging facilities (the "Railway Portfolio"); (ii) partially fund potential expansion, conversion and new-build
opportunities for railway lodging facilities (collectively, the "Additional Railway Hotels"); and (iii) as to the balance, if any, to fund working capital and for
general corporate purposes.
The Units sold pursuant to the Offering have been listed on the Toronto
Stock Exchange under AHIP's existing trading symbol HOT.UN. AHIP now
has 34,808,740 Units issued and outstanding.
These securities have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of such Act.
This news release does not constitute an offer for sale of these
securities in the United States.
This news release contains forward-looking information within the
meaning of applicable securities legislation, which reflects AHIP's
current expectations regarding future events. Forward-looking
information is identified by the use of terms and phrases such as
"anticipate", "believe", "budget", "could", "estimate", "expect",
"going-in", "intend", "may", "opportunities", "plan", "potential",
"predict", "project", "will", "would" and similar terms and phrases,
including references to assumptions. Such information includes, but is
not limited to: the use of proceeds from the Offering, including,
without limitation, to partially fund the potential acquisition of each
of the Railway Portfolio and potential conversion, expansion and
new-build opportunities for the Additional Railway Hotels. Actual
events or results may differ materially.
Forward-looking information contained in this news release is based on
certain key expectations and assumptions made by AHIP, including,
without limitation those with respect to: the acquisition, expansion,
conversion, opening and successful integration, as applicable, of the
Railway Portfolio and the Additional Railway Hotels; capitalization
rates; fees and reserves; targeted completion dates; pro forma
leverage; and payout ratios. Although the forward-looking information
contained in this news release is based upon what AHIP's management
believes to be reasonable assumptions, AHIP cannot assure investors
that actual events or results will be consistent with such information.
Forward-looking information reflects current expectations of management
regarding future events and operating performance as of the date of
this news release. Such information involves significant risks and
uncertainties, should not be read as guarantees of future performance
or results, and will not necessarily be accurate indications of whether
or not such results will be achieved. A number of factors could cause
actual results to differ materially from the results discussed in the
forward-looking information, and a description of these factors can be
found under "Risk Factors" in AHIP's Annual Information Form dated
March 27, 2015 and under "Risks and Uncertainties" in AHIP's
Management's Discussion and Analysis dated August 12, 2015, both of
which are available on SEDAR at www.sedar.com.
The forward-looking information contained herein is expressly qualified
in its entirety by this cautionary statement. The forward-looking
information is made as of the date of this news release and AHIP
assumes no obligation to update or revise such information to reflect
new events or circumstances, except as may be required by applicable
The potential conversion, expansion and new-build opportunities for the
Additional Railway Hotels described in this news release are indicative
only, as these potential transactions are being evaluated and
negotiated with the applicable sellers. In addition, each transaction,
if it proceeds, would be subject to conditions, including satisfactory
completion of AHIP's due diligence and negotiation of formal legal
documents. For example, AHIP cautions that there can be no assurance
that any such transaction will complete, or what the terms of such a
transaction, if any, may be. AHIP undertakes no obligation to update
investors on the status of any potential transactions described in this
news release unless and until all key conditions are satisfied and the
Board of Directors of AHIP's general partner has approved the
transaction, in each case.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
AHIP is a limited partnership formed under the Limited Partnerships Act (Ontario) to invest in hotel real estate properties located
substantially in the United States and is engaged primarily in the
railroad employee accommodation, transportation-oriented, and
select-service lodging sectors. AHIP's properties are mostly located in
secondary and tertiary markets in the United States in close proximity
to railroads, airports, highway interchanges, and other demand
generators. AHIP currently owns 73 hotels including 38 hotels serving
the U.S. rail industry pursuant to long-term railway contracts and 35
hotels affiliated with leading national and international hotel brands.
AHIP's long-term objectives are to: (i) generate stable and growing
cash distributions from hotel properties substantially in the U.S.;
(ii) enhance the value of its assets and maximize the long-term value
of the hotel properties through active management; and (iii) expand its
asset base and increase its AFFO per unit through an accretive
acquisition program, participation in strategic development
opportunities and improvements to its properties through targeted
value-added capital expenditure programs.
Additional information relating to AHIP, including its other public
filings, is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS NEWS RELEASE.
SOURCE American Hotel Income Properties REIT LP
For further information:
Andrew Greig, Investor Relations
American Hotel Income Properties REIT LP
Suite 1660 - 401 West Georgia Street
Vancouver, B.C. V6B 5A1
Phone: (604) 633-2857