Provider: Thomson Reuters Stock Report
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American Hotel Income Properties REIT LP Announces USD57.3 Million Hotel Portfolio Acquisition And $35.0 Million Equity Financing
American Hotel Income Properties REIT LP announced that it has agreed to acquire four hotel properties located in metropolitan Pittsburgh, Pennsylvania for an aggregate purchase price of approximately USD57.3 million, excluding post-acquisition adjustments and brand mandated property improvement plans. AHIP has also entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and National Bank Financial Inc, to sell, on a bought deal basis, 3,450,000 subscription receipts of AHIP at a price of $10.15 per Subscription Receipt for gross proceeds to AHIP of approximately $35.0 million. The Acquisition Portfolio will be purchased at a weighted average going-in capitalization rate of approximately 9.7% (after consideration for all hotel management fees, accounting fees, capital expenditure fees, and a reserve for furniture, fixtures and equipment), or approximately USD134,000 per suite, after accounting for brand mandated property improvement plans to upgrade furniture, fixtures and equipment, which is expected by AHIP to cost, in aggregate, approximately USD6.0 million. Including the property improvement plans and closing costs, the aggregate cost to AHIP for the Acquisition Portfolio is expected to be approximately USD65.0 million.
Latest Developments for American Hotel Income Properties REIT LP
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- American Hotel Income Properties REIT LP Announces April 2013 Cash Distribution
- American Hotel Income Properties REIT LP Announces March 2013 Cash Distribution
- American Hotel Income Properties REIT LP Completes Exercise Of Over Allotment Option Associated With Recent Initial Public Offering
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