InnVest REIT completes C$110 million bought deal equity offering and concurrent private placement

On November 6, 2014, InnVest Real Estate Investment Trust ("InnVest"), holding one of Canada’s largest hotel portfolios comprising over 110 hotel properties, with approximately 14,000 rooms and operated under internationally recognized franchise brands, reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets and CIBC World Markets, with RBC Capital Markets and BMO Capital Markets acting as bookrunners, to sell on a bought deal basis, 12,050,000 units at a price of $5.25 per unit for aggregate gross proceeds of Cdn.$63,262,500 (the “Public Offering”).

InnVest also concurrently completed a private placement with certain of its existing unitholders, trustees and officers (the “Purchasing Insiders”), pursuant to which the Purchasing Insiders purchased an aggregate of 9,000,000 Units for aggregate gross and net proceeds of Cdn.$47,250,000 (the “Concurrent Private Placement”).  

The Public Offering and Concurrent Private Placement closed on November 26, 2014. InnVest intends to use the net proceeds from the Public Offering and Concurrent Private Placement to fund the acquisition of the Hyatt Regency Vancouver, its previously announced participation in the acquisition of the Fairmont Royal York Hotel in downtown Toronto, for capital expenditures, debt repayment and potential future acquisitions.

Norton Rose Fulbright acted for InnVest on all aspects of the bought deal Public Offering and Concurrent Private Placement.  The team was led by Andrea Brewer and included Paul Fitzgerald, Walied Soliman, Jacob Cawker and Jenny Yoo.