WINNIPEG, June 13, 2012 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX-V: TR.UN) announced today it has agreed to acquire the Hilton Garden Inn West Edmonton (the "Hotel") for $31 million, subject to the usual closing adjustments. The 6-storey Hotel opened in 2004 and is located at 17610 Stony Plain Road in close proximity Edmonton's West End Business District and just minutes from the West Edmonton Mall, Edmonton's number one tourist destination. The Hotel is ideally suited for both business and leisure travel.
The Hotel contains 160 guestrooms with one king bed or two queen beds, including 5 executive suites that have a private seating area, Jacuzzi tub and two-way fireplace. Other amenities offered by the Hotel include:
- 4,049 square feet of banquet and meeting space;
- heated indoor pool, whirlpool and fitness room;
- restaurant and lounge under lease to tenant/operator;
- 206 surface parking spaces; and
- Other facilities include a market pantry, business centre, guest laundry facilities and vending area.
Temple REIT will undertake a $2 million capital expenditure program over approximately18 months, consisting primarily of guest room and lobby/corridor refurbishment.
Based on the 2012/13 forecasted net income, the total investment in the Hotel of $33 million, including capital expenditures, represents a capitalization rate of approximately 10.31%. The acquisition will be financed with a first mortgage loan in the amount of $22 million and the balance in cash. The first mortgage loan will bear interest at an estimated rate of 5.3% for a three-year term and will have a 25-year amortization. The acquisition is scheduled to close on August 1, 2012.
Temple REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbols TR.UN (trust units), TR.DB.A, 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 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:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [email protected]