InnVest Real Estate Investment Trust and KingSett Real Estate Growth LP No. 5 have entered into an agreement with Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec, to acquire an 80% interest in the Fairmont Royal York Hotel in Toronto.
The joint venture will acquire the 1,363-room 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 about $37.3 million.
KingSett, with its 60% interest in the joint venture, will become the managing partner of the joint venture. Ivanhoé Cambridge will retain a 20% interest in the 85-year-old property.
The joint venture partners will invest more than $50 million of additional funds for renovations over the 24 months following the completion of the acquisition.
The transaction is expected in January 2015 and is subject to customary closing conditions.
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