MONTERREY, Mexico, July 19, 2018 (GLOBE NEWSWIRE) -- Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13 ) (ADR/OTC:DFBRY) (“Fibra Inn” or “the Company”), an internally managed Mexican real estate investment trust specializing in the hotel industry serving the traveler with global brands, announced that it has begun the process for the sale of non-strategic assets, as part of its capital recycling program. As such, it has signed a binding agreement for the sale of the Microtel Inn & Suites by Wyndham Culiacan hotel.
The agreed-upon price was Ps. 85.0 million, and the property has a significantly lower cap rate than the Company’s implied cap rate. This property was originally acquired as part of a hotel portfolio that has performed successfully and has altogether reached a cap rate for the trailing twelve months exceeding 9.5%.
Fibra Inn will invest the transaction proceeds in other projects that offer more attractive profitability, including the purchase and cancellation of certificates.
The Company continues to market the sale of some of its other properties in an orderly and efficient manner, Therefore, we expect to announce additional hotel sales transactions in the future.
The buyer intends to keep the current hotel brand, subject to the approval of the international hotel chain. This will enact the early termination contract for the hotel operator, as well as early termination for the leasing of the non-lodging spaces at no cost for the Company.
“ The capital recycling strategy began a few months ago. With this transaction, Fibra Inn reiterates its commitment to this strategy, by selling assets and using those resources to invest in other projects that are more profitable for the Company and therefore generate additional shareholder value. There are other hotels that we consider to be ideal candidates for sale and as asset managers, we will continue working towards higher efficiency, ” stated Oscar Calvillo, Chief Executive Officer.
About the Company Fibra Inn is a Mexican trust formed primarily to acquire, develop and rent a broad range of hotel properties in Mexico. The Company has signed franchise, license and brand usage agreements with international hotel brands for the operation of global brands as well as the operation of national brands. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn trades its Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange under the ticker symbol “FINN13”; its ADRs trade on the OTC market in the U.S. under the ticker symbol “DFBRY”.
Note on Forward-Looking Statements This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
| In México: | In New York: | |
| Lizette Chang, IRO | Maria Barona / Melanie Carpenter | |
| Fibra Inn | i-advize Corporate Communications | |
| Tel. 52-1-81-1778-5926 | Tel. (212)406-3691 | |
| lchang@fibrainn.mx | mbarona@i-advize.com |
