InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

December 01, 2014 17:04 ET

InterRent Announces $58.5 Million Acquisition in Ottawa, Ontario

OTTAWA, ONTARIO--(Marketwired - Dec. 1, 2014) -


InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today that it has entered into an unconditional agreement to acquire a property in Ottawa that will add 393 suites to the InterRent portfolio.

The property currently known as Forest Ridge is located at 2380 Baseline Rd, between Woodrooffe Ave and Greenbank Ave, and is ideally situated with easy access to Highways 416 and 417. The complex boarders the Centrepointe neighbourhood, which is home to Municipal offices, the Public Library and Centrepointe Theatre. It is also within close proximity to Algonquin College, Queensway-Carleton Hospital, Bayshore Shopping Centre, College Square, grocery stores, schools, parks and the proposed light rail terminal on Baseline Rd.

This large property totals almost 16 acres and consists of one high-rise (169 suites), 2 low-rises (94 suites), 130 townhomes and almost 3 acres of vacant land that has already been severed. The suite breakdown is as follows: 23 bachelor; 145 1-bedroom; 92 2-bedroom; 36 2-bedroom townhomes; and, 94 3-bedroom townhomes.

The acquisition is expected to be completed in early April at a purchase price of $56,250,000, or $143,130 per door, and $2,250,000 for the separate parcel of land, which was previously slated for a 140 unit condominium. The property is being purchased with a going in capitalization rate of 5.1% which is immediately accretive to the REIT, and will be financed through a new conventional first mortgage. The property has been well cared for and has recently undergone significant capital improvements.

"We are very pleased to announce the acquisition of this well maintained property to the InterRent portfolio. This is a large property in a strong rental area which we believe fits perfectly within the REIT's repositioning and value creation strategy. We are flattered that the Andrews Family, who are the original property owners, have entrusted us to carry on with this great property that they developed. It is truly unique in Ottawa," said Mike McGahan, CEO.

About InterRent

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.

Forward-Looking Statements

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 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.

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