TORONTO, April 13, 2015 /CNW/ – InnVest Real Estate Investment Trust (“InnVest”) (TSX:INN.UN) announced today that it has completed the refinancing of the Hyatt Regency Vancouver for a new 10-year $80.0 million mortgage at a fixed interest rate of 3.75% with a U.S. financial institution. This financing replaces the $70 million, 3 year floating rate mortgage (Canadian Bankers’ Acceptance rate plus 2.5%) incurred as part of the acquisition of the property. Incremental proceeds from the refinancing will be used to fund capital investments, to repay debt and for general corporate purposes.
“We continue to capitalize on the current low interest rate environment to strengthen our balance sheet and extend our average term to maturity. Our objectives are to appropriately finance our properties with a view to lower costs, reduce our overall debt and diversify our lender pool,” commented Drew Coles, President and Chief Executive Officer. “Looking ahead, we have approximately $218 million in long-term debt maturing through the balance of 2015 with a weighted average interest rate of 5.3%, and we expect to re-finance this debt with lower-cost mortgages in due course, further enhancing our cash flows and maturity profile,” Mr. Coles concluded.
InnVest Real Estate Investment Trust is an unincorporated open-ended real estate investment trust which owns a portfolio of approximately 110 hotels across Canada representing over 15,000 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest’s units and convertible debentures trade on the Toronto Stock Exchange (the “TSX”) under the symbols INN.UN, INN.DB.E, INN.DB.F and INN.DB.G.
SOURCE InnVest Real Estate Investment Trust