WINNIPEG, Jan. 6, 2014 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that it has completed the previously announced acquisition an extended-stay property in Yellowknife, NWT, known as Nova Court, for a price of $21.68 million, subject to customary closing adjustments. The 106-suite, extended-stay property was built in 2007 and is located at 476 Range Lake Road, adjacent to Stanton Territorial Hospital and in close proximity to the Yellowknife Airport. The property also contains approximately 8,300 square feet of unfinished space on the first floor, which Temple intends to redevelop into nine additional hotel rooms and a 750 square foot breakfast room. The estimated total cost of the new construction and refurbishment is $4.8 million.
The $21.68 million purchase price was satisfied by Temple assuming the existing 4.8% first mortgage loan in the approximate amount of $8.06 million, with the balance paid in cash. Based on the 2015 forecasted net income, the total investment in the property of $26.48 million, including new construction and refurbishment, represents an estimated capitalization rate of 10.4%.
Temple is a real estate investment company listed on the Toronto Stock Exchange 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.
This press release contains certain statements regarding the proposed transaction described herein 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. There can be no certainty that the transaction will be completed within the timeline set forth herein or all at.
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:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Executive Vice President
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [email protected]