InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

October 10, 2007 07:30 ET

InterRent REIT Announces Completion of Purchase and Sale Transactions, Refinancing of Debt at Lower Rates

TORONTO, ONTARIO--(Marketwire - Oct. 10, 2007) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced it has completed its previously announced purchase of 147 apartment suites in Sault Ste. Marie and Wallaceburg, Ontario, and the sale of two of its buildings with a total of 7 suites in Toronto, Ontario. The total purchase price for the properties in Sault Ste. Marie and Wallaceburg was $7,304,000 or $49,687 per suite, while the total sale price for the Toronto properties was $732,750 or $104,679 per suite. The going in capitalization rate for the acquisitions was 9%, while the capitalization rate for the properties sold was 6.1%.

InterRent also announced that it has replaced $13.128 million of its acquisition line of credit with $10.85 million of lower cost, long term, CMHC insured first mortgages, and refinanced $2.58 million of maturing mortgages on three of its London and Prescott, Ontario properties with $2.86 million of CMHC insured and conventional first mortgage debt. The maturing mortgages and acquisition lines of credit were refinanced for five year terms at a weighted average interest rate of 4.97% compared to the 7.01% weighted average interest rate for the maturing loans and acquisition line. The refinancing will result in annual savings of $418,671 on mortgage interest payments. The loan to value (LTV) ratio on the new financing is 69% as compared to the pre-existing 78%, reducing the REIT's overall debt to GBV ratio.

Commenting on the announcements, Michael Newman, InterRent's CEO, stated, "These purchase and sale transactions illustrate management's ability to make accretive acquisitions and profitably dispose of non-core assets. Refinancing existing debt at attractive interest rates that are lower than the pre-existing ones, demonstrates that Canadian financial institutions continue to make low cost mortgage debt available to strong companies, for accretive asset acquisitions in the multi-residential real estate industry. The replacement of the major portion of our acquisition line with CMHC insured financing frees up additional funds for future acquisitions."

About InterRent

InterRent is a rapidly expanding, growth oriented real estate investment trust engaged in building unitholder value through the accretive acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 4,007 apartment suites under ownership across the Province of Ontario.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable 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 publicly filed information which may be located at 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.

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