/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN
THE UNITED STATES/
MISSISSAUGA, 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.
The 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.
Following 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.
The 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
provided by the parties to the Purchase Agreement.
Assuming all conditions to the completion of the Disposition are
satisfied or waived, the Disposition is expected to occur in July,
2018. Pursuant to the terms of the Purchase Agreement, the
Purchaser may close on the acquisition of each individual hotel
property on separate dates, provided adequate notice is delivered
to the REIT, the Purchaser closes on the Gautier property first, all applicable closing
conditions are satisfied or waived, and closing on all Disposition
Properties is completed by July, 2018.
Forward Looking Statements
Certain statements contained in this press release constitute
forward-looking information within the meaning of Canadian
securities laws. Forward looking information may relate to future
results, performance, achievements, events, prospects or
opportunities for the REIT or the real estate industry and may
include statements regarding the completion of the Disposition. In
some cases, forward-looking information can be identified by such
terms such as "may", "will", "occur", "expect", or the negative
thereof or other similar expressions concerning matters are not
historical facts.
Forward-looking statements necessarily involve known and unknown
risks and uncertainties, that may be general or specific and which
give rise to the possibility that expectations, predictions or
conclusions will not prove to be accurate, assumptions may not be
correct and objectives, strategic goals and priorities will not be
achieved. A variety of factors, many of which are beyond the REIT's
control, affect the operations, performance and results of the REIT
and its business, and could cause actual results to differ
materially from current expectations of anticipated events. These
factors include, but are not limited to, the risks discussed in the
REIT's materials filed with Canadian securities regulatory
authorities from time to time on www.sedar.com, risks related to
the Disposition and risks related to the REIT and its business. The
reader is cautioned to consider these and other factors,
uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements as there can be no assurance
actual results will be consistent with such forward-looking
statements.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in drawing a
conclusion, including management's perceptions of historical
trends, current conditions and expected future developments,
including the closing of the Disposition. While management
considers these assumptions to be reasonable based on currently
available information, they may prove to be incorrect. The
forward-looking statements made in this press release are dated,
and relate only to events or information, as of the date of this
press release. Except as specifically required by law, the REIT
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
About R&R REIT
R&R REIT is an open-ended real estate investment trust
focused on increasing unitholder value through the acquisition and
ownership of hotel properties located in the United States.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE R&R Real Estate Investment Trust