OTTAWA, ONTARIO--(Marketwired - Feb. 23, 2017) -
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 agreement with a syndicate of underwriters led by BMO Capital Markets, and including, Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., Scotiabank, TD Securities Inc., CIBC World Markets Inc., RBC Capital Markets, Industrial Alliance, National Bank Financial Inc., Raymond James Ltd., Echelon Partners, Inc., and Eight Capital (together the "Underwriters"), to purchase 6,520,000 trust units of InterRent (the "Trust Units") at a price of $7.68 per Trust Unit for gross proceeds of approximately $50 million on a bought deal basis (the "Offering").
InterRent has also granted the Underwriters an over-allotment option to increase the size of the Offering by up to an additional 15%, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering.
The net proceeds from the Offering will be used in part to pay down corporate debt including the debt incurred with the anticipated closing of the Montreal acquisition in early March, and for working capital and general corporate purposes.
Closing of the Offering is anticipated to occur on or about March 15, 2017 (the "Closing Date") and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.
The Trust Units will be offered in all provinces and territories of Canada by way of a short form prospectus.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
The REIT announced on February 21, 2017 that it has entered into an unconditional agreement to purchase a property in Montreal comprised of 224 suites that is scheduled to close in early March. The property, located at 1111 and 1121 Mistral, consists of two six-stories concrete mid-rises with a total of 196 1-bedroom and 28 2-bedroom suites and is in close proximity to Highway 40, the Jarry metro station, as well as numerous schools, stores, parks and amenities. The purchase price of $24 million, or $107,143 per suite, represents a going-in cap rate of 5.3% and will be financed at approximately 70% though a CMHC insured mortgage.
"We are very pleased to announce this acquisition as it increases our presence in Montreal, which is one of our three focus markets. We believe the lack of purpose-built concrete rental buildings in the Villeray neighbourhood and when combined with the various resident amenities, including, elevators, an outdoor pool, outdoor terrace, and fitness centres makes this property one of the dominant offerings in the area," 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.
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 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.