WINNIPEG, Dec. 14, 2012 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX: TR.UN) announced today it has completed the previously announced acquisition of a 50% beneficial co-ownership interest in the Holiday Inn South in Winnipeg, MB (the "Hotel") for $5.5 million. The 11 storey, full-service Hotel, located at 1330 Pembina Highway, contains 170 guestrooms, 7,500 square feet of banquet and meeting facilities, restaurant, lounge, indoor swimming pool, whirlpool, fitness area and business centre.
The $5.5 million acquisition price was financed by the assumption of 50% of the existing first mortgage loan in the amount of $2.4 million and $3.1 million in cash. The first mortgage loan bears interest at prime plus 1.75%.
The Hotel is scheduled to undergo a capital expenditure program at an estimated total cost of $2.5 million consisting primarily of guest room and lobby/corridor refurbishment.
The remaining 50% beneficial co-ownership interest is owned by Lake Louise Limited Partnership ("LLLP"). 2668921 Manitoba Ltd. ("2668921") owns 23% of LLLP. 2668921 is a "related party" of Temple REIT by virtue of the fact that all of its shares are owned by the spouse of Mr. Arni Thorsteinson, the Chief Executive Officer and a trustee of Temple REIT and Mr. Thorsteinson is the President of 2668921. 2668921 is also the parent company of Shelter Canadian Properties Limited, the asset manager of Temple REIT. Temple expects to offer to acquire the remaining 50% ownership of the Holiday Inn South in early 2013, subject to any regulatory approvals.
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@example.com