American Hotel Income Properties REIT LP (AHIP) completed its initial public offering (IPO) of 9,570,000 limited partnership units on the Toronto Stock Exchange on February 20, 2013. With the exercise of the over-allotment option by the underwriters for an additional 435,000 units on March 1, 2013, the IPO raised total gross proceeds of $100.1 million.
Most of the net proceeds of the offering were used by AHIP to indirectly acquire 32 hotel properties located in 19 US states, primarily operated under the “Oak Tree Inn” banner.
The hotel properties, which will be held indirectly by AHIP through its US REIT subsidiary, are located near high-volume railroad hubs and switching terminals, and are believed by AHIP to comprise the largest and highest-quality chain of crew lodging facilities currently serving the US freight railroad industry.
The syndicate of underwriters was 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.
AHIP was represented in the IPO and the acquisition by Farris, Vaughan, Wills & Murphy LLP in Vancouver, with a team that included Brian Canfield, Duncan Reid, Kwang Lim, Matthew Smith and Robert Veitch. AHIP was represented in certain US commercial real estate and senior secured financing matters by Snell & Wilmer LLP in Phoenix, with a team that included Joyce Wright, Garth Stevens, Bill Kastin, John Baird, Marc Currie and Byron Sarhangian.
The underwriters were represented by Blake, Cassels & Graydon LLP in Toronto, with a team that included William Fung, Eric Moncik, Catherine Youdan and Jill Davis (securities); and Chris Van Loan and Edward Miller (tax). Greenberg Traurig, LLP represented the underwriters on US matters with a team that included Fred Fisher, Gary Silverman, Joseph Herz and Rick Melnick (corporate and securities); Melissa Seiler and Sonia Vohra (real estate) and Gino Bianchini (tax).
The previous owners of the hotel properties were represented in the sale and purchase transaction by Paul Hastings LLP's William Simpson and Aref Afsari.