Legacy Acquires Delta Bow Valley in Calgary
TORONTO, Canada, September 5, 2006. Legacy Hotels Real Estate Investment Trust ("Legacy")(TSX: LGY.UN) today announced that it has reached an agreement to acquire the 398-room Delta Bow Valley in Calgary, Alberta for approximately $53.5 million plus closing costs. In addition, Legacy expects to invest approximately $4.0 million in the property to renovate guestrooms over the next few years.
The Delta Bow Valley is located in the heart of the city, near the Bow River running path and within walking distance of the Calgary Convention Centre. Amenities include 11 meeting rooms with a total of 11,400 square feet of meeting space, an indoor pool, fitness centre and a full-service restaurant.
The acquisition is expected to be financed through the assumption of mortgage financing and vendor financing totalling approximately $40.5 million, and Legacy's available credit facilities. Closing is anticipated in September 2006, subject to the completion of certain conditions. Legacy anticipates that this acquisition will be immediately accretive to the portfolio.
"Legacy has always sought to make opportunistic acquisitions of quality assets. The Delta Bow Valley represents an attractive investment value given its discount to replacement cost, the low supply outlook and the increasing costs of construction in Calgary," said Neil Labatte, President and Chief Executive Officer of Legacy. "The Delta Bow Valley will represent our fourth property in Calgary, one of the fastest growing markets in the country. We are also pleased to be expanding our relationship with Delta with the addition of this high quality hotel to our portfolio".
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