WINNIPEG, Dec. 23, 2015 /CNW/ - Temple Hotels Inc. (the "Corporation" or "Temple") (TSX: TPH) announced today that Shelter Canadian Properties Limited ("Shelter"), the current asset manager of the Corporation, and Morguard Corporation ("Morguard") (TSX: MRC) have entered into an asset management assignment and transition agreement (the "Assignment Agreement") pursuant to which Shelter agreed to assign to Morguard the amended and restated asset management agreement dated December 31, 2012 (the "Asset Management Agreement") between the Corporation and Shelter, and all of Shelter's rights and duties thereunder, effective April 1, 2016 (or such later date determined by Morguard) (the "Management Turnover Date"), subject to the terms and conditions set forth in the Assignment Agreement.
The independent directors of the Corporation have provided their consent to the assignment of the Asset Management Agreement in accordance with the terms and conditions set forth in the Assignment Agreement.
Under the Assignment Agreement:
(a) Morguard agrees to assume the Asset Management Agreement and all of the duties and obligations of the asset manager of the Corporation; and
(b) Shelter agrees to provide assistance to Morguard in the performance of its asset management duties in the ordinary course of business of the Corporation, as reasonably requested by Morguard, during a six-month transition period.
The assignment of the Asset Management Agreement is subject to the repayment of all indebtedness of the Corporation owing to Shelter or an affiliate of Shelter, including without limitation the revolving line of credit extended to the Corporation by 2668921 Manitoba Ltd. and the termination of such revolving line of credit. The revolving line of credit does not currently have an outstanding balance.
Assuming the satisfaction of such conditions, resignations of the Corporation will be delivered by the individuals who are officers and employees of Shelter and who serve as the executive officers of the Corporation pursuant to the Asset Management Agreement, effective on the Management Turnover Date and the Corporation will deliver a release in favour of Shelter, its affiliates and their respective directors, officers and shareholders.
Temple is a real estate investment company listed on the TSX under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple, please visit our website at www.templehotels.ca.
About Morguard Corporation
Morguard Corporation is a major North American real estate and property management company. It has extensive retail, office, industrial and residential holdings owned directly and through its investment in Morguard REIT and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at nearly $19 billion.
For more information on Morguard, please visit Morguard.com:
This press release contains certain statements regarding the assignment of the asset management which may constitute forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual events or results differing materially from the forward-looking statements.
The Toronto Stock 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 Hotels Inc.
For further information: About Temple: Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Executive Vice President, T (204) 475-9090, F (204) 452-5505, Email: [email protected]; About Morguard Corporation: K. Rai Sahi, Chairman and CEO, T 905.281.3800; Beverley G. Flynn, Vice President, General Counsel, T 905.281.3800