TORONTO—InnVest Real Estate Investment Trust and KingSett Real Estate Growth LP No. 5 have entered into an agreement with Ivanhoé Cambridge, to acquire an 80% interest in the Fairmont Royal York Hotel in Toronto.
The deal creates a joint venture where Ivanhoé Cambridge will retain a 20% interest in the property.
The joint venture will acquire the 1,363-room Royal York Hotel for an aggregate price of $186.5 million, or $137,000 per room, with InnVest's 20% share in the joint venture being acquired for approximately $37.3 million. The joint venture expects to finance the acquisition with conventional mortgage financing. InnVest will fund its proportionate share of the acquisition equity with available cash and capacity under its existing credit facilities. The transaction is expected to close on January 30, 2015.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
