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Brookfield Real Estate Funds To Procure Watermark Lodging Trust

Acquisition of Watermark Lodging Trust by Brookfield Real Estate Funds

Brookfield Real Estate Funds To Procure Watermark Lodging Trust

Watermark Lodging Trust, Inc. announced today that it has entered into a definitive agreement with private real estate funds managed by Brookfield (“Brookfield”), according to which Brookfield will acquire all of Watermark’s outstanding shares of common stock for $6.768 per Class A share and $6.699 per Class T share in an all-cash transaction valued at $3.8 billion, including debt and preferred equity assumption.

The acquisition price is more than 7.5 percent more than the most recently disclosed Net Asset Values per share as of December 31, 2021, which are $6.29 per Class A share and $6.22 per Class T share.

Watermark Accommodation Trust, Inc. is a publicly listed, self-managed real estate investment trust (REIT) that invests in, maintains, and attempts to increase the value of lodging and accommodation assets.

The Watermark portfolio, which has been established over a decade of investing and diligent asset management, is made up of high-quality hotel assets totaling approximately 8,100 rooms spread over 25 locations. These luxury and upper-upscale assets are spread throughout 14 states, with a significant concentration in the Sun Belt area, in drive-to leisure destinations, and gateway major centers.

“We are very pleased to reach this agreement with Brookfield, as it achieves our longer-term objective of a liquidity event while providing our stockholders with an immediate and certain cash value,” said Michael Medzigian, Chairman and CEO of Watermark.

“The transaction’s premium to our most recently published Net Asset Values per share represents the strong execution of our entire team who have demonstrated the ability to find innovative solutions to address the challenges brought on by the COVID-19 pandemic.  I would like to thank the members of our Watermark team, across all functions, for their dedication and hard work over the past several years.”

The purchase is subject to various closing conditions, including shareholder approval from Watermark. The Watermark Board of Directors unanimously accepted the proposed deal, which is slated to conclude in the fourth quarter of 2022.