Temple Real Estate Investment Trust has acquired a 50-per-cent stake in Winnipeg’s Holiday Inn South hotel, with plans to buy other half in 2013.
The Winnipeg-based trust said today it acquired the 50-per-cent ownership stake from unrelated third parties for $5.5 million.
The other 50 per cent interest in the hotel is owned by Lake Louise Limited Partnership (LLLP), 23 per cent of which is owned by a numbered Manitoba company owned by the wife of Temple REIT CEO Arni Thorsteinson.
Thorsteinson is also the president of the numbered company — 2668921 Manitoba Ltd. and 2668921 is the parent company of Shelter Canadian Properties Ltd., which manages Temple REIT’s assets.
It said Thorsteinson, who is a trustee of Temple, abstained from voting on the resolution approving the transaction.
Temple said it expects to acquire LLLP’s half interest in the hotel in 2013, subject to regulatory approvals.