WINNIPEG, Oct. 15, 2012 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX: TR.UN) announced today it has agreed to acquire the Saskatoon Inn & Conference Centre (the "Hotel") for $37.15 million, subject to the usual closing adjustments. The Hotel is located at 2002 Airport Drive minutes from the Saskatoon International Airport. The site is just off Highway 11, a major north-south highway linking Saskatoon, Regina and Prince Albert, and west of Saskatoon's Airport Business Area. The Hotel is situated on a 9.23-acre parcel of land offering 661 surface parking spaces and the potential for future development of additional guest rooms.
The eight storey, full-service, conference Hotel opened in 1981 and consists of 250 guestrooms, including 21 suites, and over 28,000 square feet of meeting and banquet space, including the largest hotel ballroom in Saskatoon at 15,730 square feet. The Hotel also has a restaurant and lounge, fitness centre, indoor pool, whirlpool and three story interior garden courtyard.
Temple REIT will undertake a $10 million capital expenditure program over approximately three years, consisting of guest room and lobby and meeting rooms refurbishment as well as exterior re-cladding of the building.
The acquisition will be financed with a first mortgage loan in the amount of $27.75 million and the balance in cash. The first mortgage loan will bear interest at a rate of 4.55% for a five-year term and have a 20-year amortization. The acquisition is scheduled to close on November 1, 2012.
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, TR.DB.E and TR.DB.S (convertible debentures). The objective of Temple REIT is to provide Unitholders with stable cash distributions from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple REIT, 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]