InnVest Real Estate Investment Trust

InnVest Real Estate Investment Trust

April 01, 2011 08:00 ET

Acquisition of Additional IOT Voting Units by InnVest Master LP

TORONTO, ONTARIO--(Marketwire - April 1, 2011) - InnVest Master LP ("IMLP"), a wholly-owned subsidiary of InnVest Real Estate Investment Trust (the "REIT") (TSX:INN.UN), announced today that it acquired an additional 58,805 voting units ("Voting Units") of InnVest Operations Trust ("IOT") on March 31, 2011, representing approximately 4.14% of the outstanding Voting Units after giving effect to such acquisition. This announcement is being made solely for the purpose of complying with applicable securities laws. The acquisition of Voting Units by IMLP is an internal matter to the REIT and will not affect the interest of any holder of stapled units or stapled debentures of the REIT or IOT in any material way.

The Voting Units were acquired pursuant to a private placement, which was exempt from the prospectus requirements of applicable securities laws pursuant to section 2.8 of National Instrument 45-106 – Prospectus and Registration Exemptions because IMLP and IOT are affiliates. The price per Voting Unit acquired by IMLP was $1.0374, for an aggregate subscription price of $61,006. After giving effect to such acquisition, IMLP beneficially owns 1,421,364 Voting Units, representing 100% of the outstanding Voting Units.

IMLP acquired the additional Voting Units in order to maintain its proportionate investment interest in IOT. IMLP already held all of the outstanding Voting Units prior to the acquisition as a result of the reorganization of the REIT completed on December 31, 2010. The non-voting units of IOT are held by the public, together with the units of the REIT, as "stapled units". Following the issuance of additional stapled units during the first quarter of 2011, IMLP increased its investment in IOT to facilitate the consolidation of IOT's financial statements into those of the REIT under Canadian GAAP. IMLP may from time to time acquire additional Voting Units for the same reason or to facilitate other internal structuring objectives.

Additional details of this transaction are contained in the Early Warning Report filed on IOT's SEDAR profile concurrently with this announcement. A copy of the Early Warning Report can also be obtained by submitting a request to the attention of Tamara L. Lawson, Chief Financial Officer and Corporate Secretary of the general partner of IMLP, using the following contact information:

InnVest Master LP
5090 Explorer Drive, 7th Floor
Mississauga, ON L4W 4T9
Attn: Tamara L. Lawson, Chief Financial Officer and Corporate Secretary
Tel: (905) 206-7100


InnVest Real Estate Investment Trust (the "REIT") is an unincorporated open-ended real estate investment trust which owns a portfolio of 144 hotels across Canada representing approximately 19,000 guest rooms operated under internationally recognized brands. The REIT leases its hotels to InnVest Operations Trust ("IOT"), a taxable investment trust. IOT indirectly holds all of the hotel operating assets, earns revenues from hotel customers and pays rent to the REIT. IOT also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada, and earns revenues from franchising fees.

Each issued and outstanding REIT unit trades together with a non-voting unit of IOT as a "stapled unit" on the Toronto Stock Exchange (the "TSX") under the symbol INN.UN. InnVest REIT's convertible debentures trade on the TSX under the symbols INN.DB.B, INN.DB.C, INN.DB.D, INN.DB.E and INN.DB.F.

Contact Information

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