News

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26
Mar

 


News Release

INTERRENT ANNOUNCES $24 MILLION ACQUISITION IN BURLINGTON, ONTARIO

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ottawa, Ontario (March 26, 2013) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent”) announced today that it has entered into an unconditional agreement to acquire an apartment building  ideally situated on Lake Ontario within the city of Burlington, Ontario.

The 127 suite high rise is located at 5220 Lakeshore Road offering extremely large suites (averaging approximately 1,200 square feet) overlooking scenic Lake Ontario and consisting of 38 1-bedroom, 66 2-bedroom and 23 3-bedroom suites.   The property contains ample parking, an outdoor pool, a fitness centre,  green space for residents and additional space which may be used for further amenities.  The building is located in a desirable residential neighborhood surrounded by 4 parks and offers convenient access to public transportation, schools, and shopping. 

InterRent views this as an opportunity to acquire a well-situated property that will become a marquee asset, once repositioning efforts are completed, and which adds additional synergies to InterRent’s Burlington portfolio.   Repositioning will include the addition of further amenities, upgrading the suites on turnover, landscaping, utility saving measures as well as upgrading and branding the common areas.

The acquisition is expected to be completed by the middle of April at a purchase price of $23,925,000.  The property is being purchased with a going in capitalization rate of 5.2% and is immediately accretive.   The acquisition will be financed through a conventional first mortgage while it is being repositioned. 

“Burlington has been one of our targeted growth areas as we believe it to be a strong rental market where we have had great success repositioning other properties.  We look forward to this building becoming one of the premiere properties within our portfolio over the course of the next 12 to 24 months as we roll-out our repositioning program in order to lower operating costs and drive revenues,” said Mike McGahan, CEO. 

About InterRent

InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.  

InterRent's strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions.

InterRent's primary objective is to use the proven industry experience of the Trustees, Management and Operational Team to: (i) provide Unitholders with stable and growing cash distributions from investments in a diversified portfolio of multi-residential properties; (ii) enhance the value of the assets and maximize long-term Unit value through the active management of such assets; and (iii) expand the asset base and increase Distributable Income through accretive acquisitions. 

Forward Looking Statements

This news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation.  Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent’s most recently publicly filed information located at www.sedar.com.  InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

For further information about InterRent please contact:

Mike McGahan

Curt Millar, CA

Chief Executive Officer

Chief Financial Officer

Tel: (613) 569-5699 Ext 244

Tel: (613) 569-5699 Ext 233

Fax: (613) 569-5698

Fax:(613) 569-5698

e-mail: mmcgahan@interrentreit.com

e-mail:cmillar@interrentreit.com

web site: www.interrentreit.com

 

The TSX has not reviewed and does not accept responsibility

for the adequacy or accuracy of this release.