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R&R REIT Announces Closing of Previously Announced US$35.0 Million Portfolio Acquisition
R&R REIT Announces Closing of Previously Announced US$35.0 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$35.0 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$35.0 Million Portfolio Acquisition\nCanada NewsWire\nMISSISSAUGA, ON, Oct. 3, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nMISSISSAUGA, ON, Oct. 3, 2017 /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 nine economy extended-stay hotels (the \"Acquisition Properties\") comprising 1,020 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 purchase price for the Acquisition Properties was approximately US$35.1 million (including closing costs net of operating/capital expense credits) and was satisfied by a combination of: (i) the assumption of approximately US$15.1 million aggregate principal amount of existing mortgage debt relating to the Acquisition Properties; (ii) the issuance to the Vendors of approximately US$9.4 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; (iii) a US$8.0 million vendor-take back (the \"VTB\") loan provided by the Vendors; and (iv) approximately US$2.6 million in cash. \n\nFollowing the Acquisition, the REIT's portfolio is now comprised of 10 hotels located in nine states across the United States, representing an aggregate of 1,152 rooms.\n\nMajid Mangalji, Executive C...