Temple REIT to Take Capri Centre
- Sep 16, 2008
Temple Real Estate Investment Trust, Winnipeg, has agreed to purchase the Capri Centre, a 14-story full-service hotel, trade and conference center in Red Deer, Alberta, for C$40 million (U.S.$37.7). The 10.7-acre complex includes 218 guestrooms, including eight two-story one- and two-bedroom suites; three restaurants and three lounges; conference and trade show facilities consisting of 16 meeting rooms totalling 53,000 square feet, the largest of which can accommodate up to 1,000 people; on-site parking for more than 1,200 vehicles; and a heated outdoor swimming pool. The acquisition is scheduled to close on November 1. Following an C$8 million (U.S.$7.5) capital expenditure program over approximately 12 months, TREIT anticipates flagging the hotel as a Sheraton in 2009. In addition, a little more than two acres of the site, now used for parking, has the potential to be redeveloped with retail space. The total investment of C$48 million (U.S.$45.2 million) represents a projected cap rate of 13.8 percent and will be financed with a first mortgage loan for C$28.8 million, a vendor take-back mortgage for C$5 million and the balance from TREIT’s current cash resources. Both loans will be at 6 percent interest with five-year terms and 15-year amortization. TREIT’s first acquisition was Temple Gardens Mineral Spa, a 179-room, full-service hotel and spa complex in Moose Jaw, Saskatchewan, adjacent to the Casino Moose Jaw. Most recently, TREIT acquired a 128-room, full service hotel property in Lloydminster, Alberta. The REIT’s current portfolio consists of nine hotel properties totaling about 1,000 rooms and representing a total acquisition cost of over C$200 million.