OTTAWA, ONTARIO--(Marketwire - Feb. 25, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today that it has entered into an unconditional agreement to acquire two (2) properties ideally situated in Ottawa's west end for a combined purchase price of $18,350,000.
The properties are located in the Crystal Beach neighborhood, in the west end of Ottawa, and include a combination of garden homes and apartments with a total of 141 suites. The properties are situated in a predominantly residential area, offer excellent views of the Ottawa River, and are within close proximity to major bus transit routes as well as highway 417 and the Bayshore Shopping Center. The properties are less than one (1) kilometer away from the old Nortel Campus that was purchased by Public Works and Government Services Canada and is slated to become a Department of National Defence campus. The campus is approximately 370 acres with 12 buildings and over 2 million square feet of office space with reports indicating that a vast majority of National Defence staff in Ottawa could be relocated to the campus.
One property is located at the corner of Carling Avenue and Ullswater Drive and consists of 4 1-bedrooms; 56 2-bedrooms; and 27 garden homes and is expected to be completed by March 15, 2013. The second property is located at the corner of Carling Avenue and Crystal Beach Drive and consists of 2 1-bedrooms; 28 2-bedrooms; and 24 garden homes and is expected to be completed by May 15, 2013. The properties are being purchased with a going in capitalization rate of 5.75% and are immediately accretive to the REIT. The acquisitions will be financed through CMHC insured first mortgages.
"With our years of experience in the Ottawa market, we believe that these acquisitions are solid properties in great geographical locations and represent strong additions to the REIT's portfolio where we believe we can create more value for our Unitholders," said Mike McGahan, CEO.
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.
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.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.