Temple REIT Completes Acquisition of Saskatoon Inn & Conference Centre Located Adjacent to Saskatoon Airport

Temple Real Estate Investment Trust  announced it has completed the previously announced acquisition of the Saskatoon Inn & Conference Centre  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%.

on November 5, 2012