OTTAWA, ONTARIO--(Marketwired - April 2, 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 three (3) concrete high-rise buildings ideally situated in Côte Saint-Luc on the Island of Montreal, Quebec.
Totaling 327 suites, the 3 buildings are located at 7460 and 7461 Chemin Kingsley and 5550 Trent Avenue, just off of Chemin de la Côte-St-Luc, and within close proximity to InterRent's recently acquired property on Sir Walter Scott Avenue within Côte St-Luc. This acquisition will result in a total of 501 suites under ownership in Montreal.
The buildings are located in a desirable residential neighborhood within close proximity to many parks and convenient access to public transportation, schools, and the Centre Commercial Côte St-Luc shopping centre. The buildings consist predominantly of 1 and 2 bedroom suites and offers convenient access to downtown Montreal via the Montreal West train station and highways 15, 20, 40 and 520.
InterRent views this as an opportunity to grow in the Montreal area while increasing operational efficiencies and creating synergies with their Sir Walter Scott property. The buildings are well maintained and have recently undergone significant capital upgrades. InterRent will continue the repositioning efforts and will focus on utility saving measures, which are anticipated to substantially reduce ongoing utility costs, and the upgrading/branding of common areas in order to achieve market rents.
The purchase is expected to be completed by the middle of April at a purchase price of $34,990,000. The acquisition has a going in capitalization rate of 5.4% and is immediately accretive. Short-term financing will be utilized while the property is being repositioned after which, long-term CMHC insured financing will be put in place.
"These buildings add significant scale to our operations within Montreal, which is a market we have targeted for growth and which we have recently entered. The buildings have been well-maintained, are in a strong rental community and we believe they will require minimal capital to achieve desired results," 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.
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