WINNIPEG, Aug. 14, 2012 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX: TR.UN) announced today it has agreed to acquire the Acclaim Hotel Calgary Airport (the "Hotel") for $42 million, subject to the usual closing adjustments. The Hotel is located two kilometers north of the Calgary International Airport at 123 Freeport Boulevard Northwest. The Hotel is situated on a four acre parcel of land leased from the Calgary Airport Authority.
The existing 4-storey, full-service Hotel opened in 2009 and consists of 123 guestrooms. An expansion is under construction which will add an additional 102 guestrooms in 2013, bringing the total room count to 225. The expanded Hotel will offer a variety of amenities which include:
- 6,500 square feet of banquet and meeting space;
- two roof-top outdoor whirlpools;
- leased restaurant and lounge;
- leased salon and sundry shop;
- 260 surface parking spaces and a 40 stall underground parkade; and
- Other facilities include an exercise room, spa, business centre, guest laundry facilities and vending area.
The expansion of the Hotel is expected to be completed and operational by summer 2013 and the acquisition is scheduled to close on the later of October 1, 2013 or 60 days after completion of the expansion.
Based on 2014 stabilized net income of $4.4 million, the $42 million acquisition cost represents a capitalization rate of approximately 10.4%. The acquisition will be financed with a first mortgage loan in the amount of $27 million and the balance in cash. The first mortgage loan is expected to bear interest at an estimated rate of 4.25% for a 5-year term and have a 20-year amortization.
Temple REIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbols TR.UN (trust units), 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 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 REIT
For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [email protected]