InterRent International Properties Inc.

InterRent International Properties Inc.

June 06, 2006 09:00 ET

InterRent Announces Completion of $2.285 Million Non-Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - June 6, 2006) - InterRent International Properties Inc. ("InterRent" or the "Company")(TSX VENTURE:IIP)(FSE:I4N.F) today announced that it has issued an aggregate of 4,570,000 units at a price of $0.50 per unit for an aggregate of $2.285 million pursuant to its recently announced private placement.

The units are comprised of one (1) common share and one half of one (1/2) common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one (1) additional common share of InterRent at an exercise price of $0.60 for a period of 12 months from May 25, 2006 to May 25, 2007 and at an exercise price of $0.75 for the subsequent 12 month period from May 26, 2007 to May 25, 2008. The shares issued pursuant to the private placement are subject to a statutory hold period of four (4) months from date of issuance.

The proceeds from the sale of the units were used to (i) complete the purchase of a 63 suite apartment building in Hamilton, Ontario, (ii) retire a $1.1 million, 9% second mortgage debenture to DUCA Financial Corporation, (iii) make a deposit on two (2) buildings comprising 60 suites in Prescott, Ontario, and (iv) pay a retainer to an independent valuator to commence the valuation of the Company's Ontario apartment portfolio in preparation for its proposed business combination with Silverstone Equities and proposed conversion to a real estate investment trust (REIT). The balance of the proceeds will be used for the capital costs associated with the implementation of a water savings program and for general working capital.

InterRent also announces that an aggregate of 8.0 million warrants, each warrant convertible into one common share at $0.60, due for expiry on May 30, 2006, have expired unexercised.

In addition, the Company also announced that it has terminated the conditional agreement previously announced for the sale of 18 units in the GTA to arms length third parties, due to the potential purchaser's inability to meet the financing conditions of the conditional agreement. InterRent has been approached by several interested arms length parties for the sale of certain parts of its GTA portfolio and will pursue such discussions, and provide details in due course.

InterRent is a rapidly expanding, growth oriented real estate company engaged in building shareholder value through the acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 1,209 apartment suites under ownership and an additional 60 suites under contract.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information