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08
Mar

News Release

INTERRENT ANNOUNCES $85 MILLION BOUGHT DEAL EQUITY OFFERING

Ottawa, Ontario(March 8, 2018) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) announced today that it has entered into an agreement with a syndicate of underwriters co-led by Desjardins Capital Markets and BMO Capital Markets (the “Underwriters”) to purchase 8,700,000 trust units of InterRent (the “Trust Units”) at a price of $9.78 per Trust Unit for gross proceeds of approximately $85 million on a bought deal basis (the “Offering”).

InterRent has also granted the Underwriters an over-allotment option to increase the size of the Offering by up to an additional 1,305,000 Trust Units ($12,762,900), such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering.

The net proceeds from the Offering will be used to repay existing indebtedness from previous acquisitions, fund future acquisitions and for working capital and general trust purposes. Pro forma the Offering and the intended use of proceeds therefrom, InterRent’s leverage will decline to approximately 45% of gross-book-value. 

Closing of the Offering is anticipated to occur on or about March 28, 2018 (the “Closing Date”) and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.

The Trust Units will be offered in all provinces and territories of Canada by way of a short form prospectus.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

“This equity offering will position InterRent well in order to pursue new acquisition opportunities within our pipeline for both re-positioning properties as well as new mixed-use developments,” 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

Brad Cutsey, CFA

Curt Millar, CA

Chief Executive Officer

President

Chief Financial Officer

Tel: (613) 569-5699 Ext 244

Tel: (613) 569-5699 Ext 226

Tel: (613) 569-5699 Ext 233

Fax: (613) 569-5698

Fax: (613) 569-5698

Fax:(613) 569-5698

e-mail: mmcgahan@interrentreit.com

e-mail : bcutsey@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.