Canada-based real estate investment company Temple Hotels has signed an agreement to purchase Nova Court, an extended-stay property in Yellowknife, Northwest Territories, Canada, for $21.68m.

Located at Range Lake Road, the four-storey property was built in 2007 on a 2.37 acre site and has 106-suites with 88 parking spaces.

The property also includes an unfinished space of about 8,300ft² of on its first floor.

Following the transaction, the real estate company plans to redevelop the unfinished space into nine hotel rooms and a 750ft² breakfast room by 2014 with an expected investment of $4.8m.

"Nova Court will be Temple’s second hotel in the region."

The purchase price will be funded by the company from a current 4.8% first mortgage loan amount of about $8m, with the balance to be paid in cash.

With the 80-guestroom Days Inn & Suites, located at the centre of downtown Yellowknife, already owned by the company, Nova Court will be Temple’s second hotel in the region.

The addition of the Nova Court property to the company’s portfolio is expected to improve its synergies and provide economy of scale in the growing Yellowknife market.

The Nova Court property is currently owned by Lanesborough Real Estate Investment Trust and its acquisition is scheduled to be completed by 31 December 2013, subject to final regulatory approval.