InnVest Real Estate Investment Trust
TSX : INN.UN

InnVest Real Estate Investment Trust

September 21, 2009 16:11 ET

InnVest Real Estate Investment Trust Announces $50 Million Public Equity Offering and Adjusted Monthly Distribution

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

InnVest Real Estate Investment Trust ("InnVest" or the "Trust")(TSX:INN.UN) announced that it has reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets and Scotia Capital Inc., with RBC Capital Markets acting as bookrunner, to issue to the public, subject to regulatory approval, on a bought-deal basis, 12,658,500 units (the "Units") from treasury at a price of $3.95 per Unit for gross proceeds of approximately $50 million. Westmont Hospitality Group and/or its affiliates ("Westmont") has expressed its intention to acquire 5.0% of the Units being offered. The Trust intends to use the net proceeds of the offering to enhance its financial strength and flexibility and for general corporate purposes.

InnVest will, by September 25, 2009, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada a preliminary short form prospectus relating to the issuance of the Units. Closing of the offering is expected to occur on or about October 14, 2009.

The Trust also announced that it has declared a distribution of $0.0417 per unit payable on October 15, 2009 to Unitholders of record as at the close of business September 30, 2009. This equates to an annual distribution of approximately $0.50 per unit. The Board of Trustees (the "Board") unanimously approved the reduction of distributions after careful consideration of the ongoing economic downturn and its impact on operating performance as well as the Board's desire to strengthen the Trust's balance sheet and liquidity.

"Throughout the year, we have taken a proactive stance in our capital management initiatives. Today's capital announcements, combined with our recent refinancing activities, significantly enhance our current financial position and flexibility," commented Kenneth Gibson, InnVest's President and Chief Executive Officer. Westmont's participation in today's offering highlights their belief in the strength of the Trust."

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.

FORWARD LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks and competition. These and other factors are discussed in InnVest's 2008 annual information form which is available at www.sedar.com or www.innvestreit.com. InnVest disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.

TRUST PROFILE

InnVest REIT holds Canada's largest hotel portfolio together with an interest in Choice Hotels Canada Inc. the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 145 hotel properties, with approximately 19,000 guest rooms, operated under internationally recognized franchise brands such as Comfort Inn®, Holiday Inn®, Quality Suites/Inn®, Radisson®, Delta®, Travelodge®, Hilton® Staybridge Suites®, Fairmont Hotels®, Sheraton Suites® and Best Western®. InnVest's trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B and INN.DB.C, respectively.

Contact Information

  • InnVest Real Estate Investment Trust
    Kenneth Gibson
    President and Chief Executive Officer
    (905) 206-7100
    (905) 206-7114 (FAX)
    or
    InnVest Real Estate Investment Trust
    Tamara Lawson
    Chief Financial Officer and Corporate Secretary
    (905) 206-7100
    (905) 206-7114 (FAX)
    www.innvestreit.com