|Date Closed:||February 02, 2015|
|Deal Value:||$186.5 million|
|Client Name:||KingSett Real Estate Growth LP No. 5|
Ivanhoé Cambridge retained a 20 per cent interest in the property. The joint venture acquired the Royal York Hotel for an aggregate purchase price of $186.5 million or $137,000 per room.
The joint venture financed the acquisition with an approximate $100 million, 3-year, 3.8 per cent floating rate mortgage. KingSett Capital, with its 60 per cent interest in the joint venture, is the managing partner of the joint venture.
InnVest is the hotel asset manager and will oversee the property’s hospitality operations, working with Fairmont Hotels and Resorts, the operator of the Royal York Hotel.
Built in 1929, the Royal York Hotel is among Canada’s iconic hospitality properties. It was the tallest building in the British Commonwealth when first constructed, rising 28 floors. At that time, each room had radios, private showers and bathtubs. The space featured a glass-enclosed roof garden, a 50-ton pipe organ, and a telephone switchboard staffed by 35 operators.
Today the hotel features 1,363 guest rooms including 82 Fairmont Gold Rooms and 92 suites, and offers over 65,000 square feet of meeting space, 30,000 square feet of retail space and six food and beverage outlets.
Osler, Hoskin & Harcourt LLP represented KingSett on corporate and M&A matters with a team including Emmanuel Pressman, David Vernon, Kim Wharram and Brian Gray.
Bennett Jones LLP represented KingSett on real estate and financing matters with a team including Paul Mantini, John Van Gent, Colin Andrews and Craig Garbe.
Ivanhoé Cambridge was represented by in-house counsel Guenhaëlle Surpas-Lemonnier, and by a Davies Ward Phillips & Vineberg LLP team that included Greg Southam and Daniel Peterson.
Gowling Lafleur Henderson LLP was represented InnVest with a team including Frances Macklin, Christine Mason, Ian Macdonald (competition) and Steven Cutler.