Tue, 27/11/2012 - 06:12
Temple Real Estate Investment Trust is to acquire a 50 per cent beneficial co-ownership interest in the Holiday Inn South in Winnipeg, Manitoba for CAD5.5m.
The 11 storey, full-service hotel is located at 1330 Pembina Highway, a major north-south thoroughfare in the southern quadrant of Winnipeg, serving the new Investors Group Stadium at the University of Manitoba.
The hotel contains 170 guest rooms, 7,500 square feet of banquet and meeting facilities, restaurant, lounge, indoor swimming pool, whirlpool, fitness area and business centre.
Based on the forecasted net income for 2013, the CAD5.5m purchase price represents a capitalization rate of approximately 10 per cent. The acquisition will be financed by the assumption of 50 per cent of the existing first mortgage loan in the amount of CAD2.4m and the balance in cash. The first mortgage loan bears interest at prime plus 1.75 per cent. The acquisition is scheduled to close on 30 November 2012.
Subsequent to acquisition, the hotel is scheduled to undergo a capital expenditure programme at an estimated total cost of CAD2.5m consisting primarily of guest room and lobby/corridor refurbishment.
The transaction will be completed by Temple Reit acquiring the 50 per cent beneficial interest in the hotel that is currently owned by unrelated third parties. Lake Louise Limited Partnership (LLLP) owns the remaining 50 per cent beneficial co-ownership interest. 2668921 Manitoba owns 23 per cent 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 Arni Thorsteinson, the chief executive officer and a trustee of Temple Reit and president of 2668921. 2668921 is also the parent company of Shelter Canadian Properties, the asset manager of Temple Reit.
Temple expects to offer to acquire the remaining 50 per cent ownership of the Holiday Inn South in 2013, subject to any regulatory approvals.
The independent trustees of Temple have approved the transaction. Thorsteinson abstained from voting on the resolution approving the transaction.
Fri 21/10/2016 - 10:34
Thu 20/10/2016 - 10:19
Wed 19/10/2016 - 13:56
Wed 19/10/2016 - 13:54
Fri 21/10/2016 - 10:34
Tue 18/10/2016 - 11:07
Mon 17/10/2016 - 14:04
Fri, 21/Oct/2016 - 14:40
Fri, 21/Oct/2016 - 11:17
Fri, 21/Oct/2016 - 11:07
Fri, 21/Oct/2016 - 10:40
Fri, 21/Oct/2016 - 10:38
Fri, 21/Oct/2016 - 10:35