Business
R&R REIT Announces Closing of Previously Announced US$52.0 Million Portfolio Acquisition
R&R REIT Announces Closing of Previously Announced US$52.0 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$52.0 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\n\n\n\n\n\nR&R REIT Announces Closing of Previously Announced US$52.0 Million Portfolio Acquisition\nCanada NewsWire\nMISSISSAUGA, ON, Sept. 25, 2019\n\n\n\nMISSISSAUGA, ON, Sept. 25, 2019 /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 eight economy hotels (the \"Acquisition Properties\") comprising 906 rooms located in the United States. The REIT acquired the Acquisition Properties from entities (the \"Vendors\") controlled by an arm's length third party and that 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 (as well as certain employees of Westmont Hospitality Group (\"WHG\")), which is controlled by Mr. Mangalji), have minority interests in.\nThe total cost for the Acquisition Properties was approximately US$53.6 million (including closing costs) and was satisfied by a combination of: (i) cash from a mortgage loan of approximately US$34.0 million aggregate principal amount from a third party lender; (ii) the issuance of approximately US$9.6 million of Class B limited partnership units (the \"Class B LP Units\") of a newly formed limited partnership that indirectly holds the Acquisition Properties (economically equivalent to and exchangeable for units of the REIT (\"Trust Units\")), at a price of C$0.20 per Class B LP Unit, and attached special voting units in the REIT (\"Special Voting Units\" and together with the Trust Units, \"Voting Units\"); (iii) a US$7.0 million vendor-take back loan (under which loan entities controlled by Mr. Mangalji and Mr. Klingher, as well as certain other WHG employees, will be the lenders); and (iv) approximately US$3.0 million in cash. \nFollowing the Acquisition, the REIT's portfolio is now...