WINNIPEG, Nov. 2, 2012 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX: TR.UN) announced today it has completed the previously announced acquisition of the Saskatoon Inn & Conference Centre (the "Hotel") located at 2002 Airport Drive minutes from the Saskatoon International Airport. The eight storey, full service conference Hotel contains 250 guestrooms, over 28,000 square feet of conference space, restaurant, lounge and three storey interior garden courtyard. 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 $37.15 million acquisition price, subject to the usual closing adjustments, was financed with a first mortgage loan in the amount of $27.75 million and the balance in cash. The first mortgage loan bears interest at 4.55% for a five-year term and has a 20-year amortization.
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.
Based on forecasted 2013 net operating income of $4.8 million, the total investment in the Hotel of $47.15 million, including capital expenditures, represents a capitalization rate of approximately 10.2%.
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]