Business
R&R REIT Announces Agreement to Sell Three Hotel Properties for US$10.2 Million
R&R REIT Announces Agreement to Sell Three Hotel Properties for US$10.2 Million ...
About this update from R&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nR&R REIT Announces Agreement to Sell Three Hotel Properties for US$10.2 Million\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nR&R REIT Announces Agreement to Sell Three Hotel Properties for US$10.2 Million\nCanada NewsWire\nMISSISSAUGA, ON, April 3, 2018\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nMISSISSAUGA, ON, April 3, 2018 /CNW/ - R&R Real Estate Investment Trust (the \"REIT\") (TSXV: RRR.UN) today announced that it has, through certain of its subsidiaries, entered into an agreement to sell three of its hotel properties (the \"Disposition Properties\") for an aggregate price of US$10.2 million (the \"Disposition\"), subject to adjustment, to The Siegel Group Nevada, Inc., an arm's length third party (the \"Purchaser\"). The net proceeds of the Disposition, expected to be approximately US$9.2 million, are anticipated to be used to repay outstanding indebtedness of the REIT. \n\nThe Disposition Properties consist of three economy extended-stay hotels located in the United States that are currently indirectly owned by the REIT, comprising an aggregate of 335 rooms. Two of the Disposition Properties operate under the HomeTowne Studios brand and the remaining Disposition Property operates under the HomeTowne Suites brand. The Disposition Properties are located in Montgomery, Alabama, Gautier, Mississippi and Alexandria, Louisiana. \n\nFollowing the Disposition, the REIT's portfolio will be comprised of seven hotel properties located in six states across the United States, representing an aggregate of 817 rooms. \n\nThe Disposition will be completed pursuant to a purchase and sale agreement among certain subsidiaries of the REIT and the Purchaser (the \"Purchase Agreement\") and will be conditional upon the completion of diligence to the Purchaser's satisfaction and other customary closing conditions. The Purchase Agreement also contains customary provisions for transactions of this nature, including representations, warranties, covenants and indemnities pro...