Business
R&R REIT Announces Closing of Previously Announced US$31.5 Million Portfolio Acquisition
R&R REIT Announces Closing of Previously Announced US$31.5 Million Portfolio Acquisiti...
About this update from R&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nR&R REIT Announces Closing of Previously Announced US$31.5 Million Portfolio Acquisition\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 Closing of Previously Announced US$31.5 Million Portfolio Acquisition\nCanada NewsWire\nMISSISSAUGA, ON, Aug. 1, 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, Aug. 1, 2018 /CNW/ - R&R Real Estate Investment Trust (the \"REIT\") (TSXV: RRR.UN) today announced that it has completed its previously announced acquisition (the \"Acquisition\") of a portfolio of five economy extended-stay hotels (the \"Acquisition Properties\") comprising 656 rooms located in the United States. The REIT acquired the Acquisition Properties from entities (the \"Vendors\") controlled by Majid Mangalji, Executive Chairman and Trustee of the REIT and the largest beneficial unitholder of the REIT (on a fully diluted basis), and Michael Klingher, President and Chief Executive Officer of the REIT.\n\nThe total cost for the Acquisition Properties was approximately US$32.1 million (including closing costs) and was satisfied by a combination of: (i) the assumption of approximately US$20.5 million aggregate principal amount of existing mortgage debt relating to the Acquisition Properties; (ii) the issuance to the Vendors of approximately US$11 million (C$14.4 million) of Class B limited partnership units (the \"Class B LP Units\") of newly-formed limited partnerships that hold the Acquisition Properties (economically equivalent to and exchangeable for units of the REIT), at a price of C$0.20 per Class B LP Unit, and attached special voting units in the REIT; and (iii) approximately US$0.6 million in cash.\n\nFollowing the Acquisition and the completion of the REIT's previously announced disposition of three hotel properties to an arm's length third party, the REIT's portfolio is now comprised of 12 hotel properties located in nine states across the United States, representing an aggregate of 1,473 rooms. \n\nMic...