Press release from Marketwire
InnVest Real Estate Investment Trust Announces Sale of Two Properties
Wednesday, July 03, 2013
InnVest Real Estate Investment Trust Announces Sale of Two Properties10:30 EDT Wednesday, July 03, 2013
TORONTO, CANADA--(Marketwired - July 3, 2013) - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) today announced that it has completed separate sales of an office and retail complex in Sherbrooke and the 711-room Delta Centre-Ville hotel in Montreal for aggregate gross proceeds of $71.6 million. Over $51 million of corresponding mortgage debt was repaid as part of these transactions. InnVest expects to generate aggregate net proceeds, after debt repayment and closing costs of over $9 million.
Totalling approximately 108,000 square feet, the office and retail complex in Sherbrooke was an ancillary asset which was adjacent to a hotel. The asset was sold to a local business owner in late May 2013.
The Delta Centre-Ville was acquired by an international joint venture. As part of the Delta Centre-Ville sale, InnVest, through its operating subsidiaries, will continue to oversee the property and Delta Hotels and Resorts will continue to manage the hotel until October 31, 2013 at which point, the hotel is expected to be converted to an alternative use.
Commenting on the transaction, Anthony Messina, InnVest's President and Chief Executive Officer said, "We are making solid progress against our strategic plan to reposition our portfolio and strengthen our balance sheet. These dispositions are an opportunity for InnVest to realize embedded asset value, reduce leverage and redeploy capital into higher return alternatives. Following these transactions, we continue to enjoy a meaningful presence in the province of Quebec which continues to represent over one-fifth of our portfolio."
InnVest is an unincorporated open-ended real estate investment trust which owns a portfolio of 134 hotels across Canada representing approximately 17,000 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.C, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.
Forward Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks, competition and the status of InnVest REIT as a REIT for Canadian federal income tax purposes in any year. These and other factors are discussed in InnVest REIT's annual information form for the year ended December 31, 2012, which is available at www.sedar.com. InnVest REIT disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Vice President, Finance and Investor Relations
(905) 206-7114 (FAX)