TORONTO, ONTARIO–(Marketwire – July 28, 2010) – InnVest Real Estate Investment Trust (“InnVest”) (TSX:INN.UN) cancelled its quarterly conference call previously scheduled for August 11, 2010 in light of its pending public offering for convertible debentures. InnVest intends to release its 2010 second quarter results prior to the market open on August 11, 2010.
InnVest also announced that it has obtained the final court approval from the Ontario Superior Court of Justice of the previously announced proposed Plan of Arrangement (the “Arrangement”) pursuant to which InnVest will transfer all of its directly and indirectly held operating assets to InnVest Operations Trust, a newly-formed unit trust (“IOT”). As a result of the reorganization, IOT (through its subsidiaries) will hold all of the operating assets and franchising business previously held by InnVest, earn revenues from hotel customers and pay rent to InnVest (the owner of the hotels). On the effective date of the Arrangement, each InnVest unitholder will receive one unit of IOT for each InnVest unit held by it on that date. Thereafter, each issued and outstanding InnVest unit will trade together with a unit of IOT on a “stapled” basis unless the unitholders of InnVest vote in favour of an uncoupling of the stapled units or the REIT’s trustees approve an uncoupling upon an event of bankruptcy or insolvency.
InnVest received 99.87% unitholder approval for the Arrangement at its annual and special meeting held June 16, 2010. The Arrangement is expected to be completed by the end of 2010.
FORWARD LOOKING STATEMENTS
Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks and competition. These and other factors are discussed in InnVest’s 2009 annual information form which is available at www.sedar.com or www.innvestreit.com. InnVest disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.
InnVest holds Canada’s largest hotel portfolio together with an interest in Choice Hotels Canada Inc. the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 145 hotel properties, with approximately 19,000 guest rooms, operated under internationally recognized franchise brands such as Comfort Inn®, Holiday Inn®, Quality Suites/Inn®, Radisson®, Delta®, Travelodge®, Hilton® Staybridge Suites®, Fairmont Hotels®, Sheraton Suites® and Best Western®. InnVest’s trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B, INN.DB.C and INN.DB.D, respectively.