InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

August 05, 2009 21:32 ET

InterRent REIT Announces Conditional Approval of Proposed Financing

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted notice and conditionally approved the listing of up to 9,333,333 Units, at a price of $1.50 per Unit, pursuant to the previously announced non-brokered private placement (the "Offering") of a minimum of 5,333,333 trust units of InterRent (the "Units") and a maximum of 9,333,333 Units, to institutional and high net worth investors. As previously disclosed, InterRent currently has 19,041,141 units issued and outstanding. Accordingly, the maximum offering represents approximately 49.0% of such Units.

Although InterRent previously disclosed that it intended to enter into a property management agreement (the "Management Agreement") with CLV Group Inc. ("CLV") concurrent with the initial closing of the Offering, InterRent will not enter into the Management Agreement until the entering into of such agreement has been approved by unitholders of InterRent (other than CLV, Mike McGahan, CLV's principal, and their related parties). The transaction that was described in InterRent's July 28, 2009 press release has otherwise not been amended. Approval of the Management Agreement and nomination of InterRent's proposed slate of trustees are among the items to be considered at InterRent's upcoming annual and special meeting of unitholders (the "Meeting"). As previously disclosed, it is expected that InterRent will set a new record date and meeting date following closing of the Offering and accordingly, each of the investors acquiring Units pursuant to the Offering will be entitled to vote at the Meeting (other than as disclosed above in connection with approval of the Management Agreement).

The initial closing of the Offering may not occur until at least two clear trading days have passed following the issuance of this press release, in accordance with the TSX's conditional approval of the Offering. InterRent will issue a further press release once the closing date of the Offering is determined.

InterRent also received a Notice of Application from NorthWest Value Partners Inc. today and, as previously disclosed, is of the view that the allegations set out in such Notice of Application are completely without merit and will be vigorously defended.

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 4,033 apartment suites under ownership.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning applicable Canadian securities legislation. Generally, 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". This news release includes forward looking statements with respect to the proposed Offering and the proposed Management Agreement. In addition to the risks that the Offering may not close on the terms disclosed in this news release, or at all, the Management Agreement may not be approved. In addition, 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 news 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 news release to reflect actual events or new circumstances, except as required by applicable law.

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