TORONTO Legacy Hotels Real Estate Investment Trust has completed the purchase of The Fairmont Empress in Victoria, British Columbia, and the Fairmont Le Chateau Frontenac in Quebec City, Quebec. The two resorts were purchased from a wholly owned subsidiary of Canadian Pacific Hotels & Resorts and have now become part of the Legacy Hotels portfolio. The purchase price of the hotels was $120 million for The Fairmont Empress and $185 million for the Fairmont Le Chateau Frontenac, plus approximately $9 million in closing costs.
The hotels are held in a wholly owned subsidiary of Legacy, which issued 14.7 million exchangeable shares to a wholly owned subsidiary of Canadian Pacific at a price of $8.60 per share for $126.4 million. The balance of the purchase has been satisfied by a note issued to the vendor. This note will be repaid from the net proceeds of secured, non-recourse loans to the company from third party lenders. (2/1/01)