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TORONTO (Reuters) - The Fairmont Royal York Hotel in the heart of downtown Toronto is getting new owners and a facelift, with Canada's KingSett Real Estate Growth LP and InnVest REIT INN_u.TO outlining plans on Tuesday to acquire an 80 percent stake in the historic hotel for C$186.5 million ($166.53 million).
Ivanhoé Cambridge, the real estate investment arm of pension fund Caisse de dépôt et placement du Québec, is selling control but it plans to retain a 20 percent stake in the hotel built by Canadian Pacific Railway in the late 1920s.
The 1,363 guest room hotel is well on the way to completing a C$100 million renovation and the new investors plan to invest more than C$50 million of additional funds for renovations over the 24 months following the completion of the acquisition early next year.
KingSett, with its 60 percent interest, will become the managing partner of the joint venture. InnVest, with a 20 percent stake, will become the hotel asset manager and will oversee the property's hospitality operations, working with Fairmont Hotels and Resorts Inc [NOVSCF.UL], the operator of the Royal York.
Reporting by Euan Rocha; Editing by Peter Galloway