/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA./
VANCOUVER, March 1, 2013 /CNW/ - American Hotel Income Properties REIT
LP ("AHIP") (TSX: HOT.UN) announced today that the exercise of the remaining
balance of the over-allotment option associated with its recent initial
public offering has been completed, resulting in the issuance of an
additional 435,000 limited partnership units ("Units") at a price of
Cdn$10.00 per Unit for gross proceeds of Cdn$4.35 million.
This issuance completes the exercise of the over-allotment option in
full, as described in AHIP's final prospectus dated February 12, 2013,
and increases the total gross proceeds from AHIP's initial public
offering to Cdn$100.1 million.
The offering was underwritten by a syndicate of underwriters co-led by
Canaccord Genuity Corp. and National Bank Financial Inc., and included
TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc.,
Scotia Capital Inc., Dundee Securities Ltd., GMP Securities L.P.,
Macquarie Capital Markets Canada Ltd., Burgeonvest Bick Securities
Limited and Haywood Securities Inc.
The net proceeds of the offering and over-allotment have been used to
indirectly acquire 32 hotel properties located in 19 U.S. states which
focus on railroad employee accommodation, with the remainder to be used
to acquire additional suitable hotel properties and for general working
capital purposes.
AHIP's Units trade on the TSX under the symbol HOT.UN. There are
currently 10,405,000 Units issued and outstanding.
These securities have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States of America without registration or
an applicable exemption from the registration requirements of that Act.
This news release does not constitute an offer for sale of these
securities in the United States of America.
Forward-Looking Information
This news release contains forward-looking information within the
meaning of applicable securities legislation, which reflects AHIP's
current expectations regarding future events. Forward-looking
information is identified by the use of terms and phrases such as
"anticipate", "believe", "could", "estimate", "expect", "intend",
"may", "plan", "predict", "project", "will", "would" and similar terms
and phrases and includes, but is not limited to, the intention to use
remaining net proceeds from AHIP's initial public offering to acquire
additional suitable hotel properties and for general working capital
purposes. Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties, many
of which are beyond AHIP's control, that could cause actual results and
events to differ materially from those that are disclosed in, or
implied by, such forward-looking information. Such assumptions include,
but are not limited to, a reasonably stable North American economy and
stock market. Such risks and uncertainties include, but are not limited
to, failure to complete the acquisition of additional suitable hotel
properties and the factors discussed under "Risk Factors" in the final
prospectus of AHIP dated February 12, 2013. The forward-looking
information contained herein is made as of the date of this news
release and, except as expressly required by applicable law, AHIP
assumes no obligation to publicly update or revise such information,
whether as a result of new information, future events or otherwise.
About American Hotel Income Properties REIT LP
AHIP has been formed to indirectly own and acquire hotel properties in
the United States. A portion of the net proceeds from its initial
public offering have been used to indirectly acquire 32 hotel
properties located in 19 U.S. states. AHIP's long-term objectives are
to: (i) generate stable and growing cash distributions from hotel
properties substantially in the United States; (ii) enhance the value
of its assets and maximize the long-term value of the hotel properties
through active management; and (iii) expand its asset base and increase
its Adjusted Funds From Operations ("AFFO") per Unit through an
accretive acquisition program, participation in strategic development
opportunities and improvements to the properties through targeted
value-added capital expenditure programs.
Additional information relating to AHIP, including the final prospectus
and other public filings, is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.
SOURCE: American Hotel Income Properties REIT LP
