newswire.ca
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CHIP REIT unitholders approve treasury issuance to Belkorp
VANCOUVER, Aug. 30 /CNW/ - Canadian Hotel Income Properties
Real Estate Investment Trust - HOT.un
Canadian Hotel Income Properties Real Estate Investment Trust (``CHIP
REIT') announced that, at a Special Meeting held today, unitholders
overwhelmingly approved the treasury issuance of 5 million units, at a price
of $10 per unit, to BII Acquisition Limited Partnership (``Belkorp LP'), an
affiliate of Belkorp Industries Inc. Unitholders voted 88% in favour of the
treasury issue.
The second component of a $100 million investment (the ``Belkorp
Transaction') in CHIP REIT by Belkorp LP, is a $50 million offer to acquire 5
million units of CHIP REIT at $10 cash per unit. The Belkorp Transaction is
contingent on at least 5 million units being tendered to the offer. Both the
treasury issue and the offer are scheduled to close on September 2, 1999.
``We are pleased by today's results which clearly indicate the strong
support among CHIP REIT unitholders for the Belkorp Transaction,' said Rhys
Eyton, Chairman, President and CEO of CHIP REIT. ``Upon completion of this
transaction, CHIP REIT will have cash and debt capacity in excess of $120
million - funds that will support future growth and portfolio enhancement.'
CHIP REIT was Canada's first hotel real estate investment trust and has a
focus on mid-market and upscale full-service hotels. Through upgrades,
repositioning and franchising, CHIP REIT improves the operating performance of
the properties within the portfolio to create value for investors. CHIP REIT
currently owns and operates 36 hotels with close to 8,000 rooms. CHIP REIT
units trade on The Toronto Stock Exchange under the symbol HOT.un.
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For further information: Kevin Grayston, Executive Vice President & CFO
(604) 685-0011, fax (604) 685-0019, www.chipreit.com <http://www.chipreit.com> |
