InterRent International Properties Inc.
TSX VENTURE : IIP
FRANKFURT : I4N

InterRent International Properties Inc.

October 16, 2006 09:15 ET

InterRent International Properties Inc. Announces Purchase and Sale Transactions

TORONTO, ONTARIO--(CCNMatthews - Oct. 16, 2006) - InterRent International Properties Inc., ("InterRent" or the "Company") (TSX VENTURE:IIP)(FRANKFURT:I4N) today announced that it has entered into an unconditional agreement for the acquisition from an arms' length party of 24 apartment suites in Prescott, Ontario for a total purchase price of $840,000, ($35,000/suite) and the unconditional sale to four arms' length parties, of four, small multi residential buildings, representing 25 units in the Greater Toronto Area (GTA) and Orangeville, Ontario for total gross proceeds of $2,495,000, ($99,800/suite). The acquisition is scheduled to close on December 4, 2006, while two of the sales have already been completed, with the other two scheduled for completion on or before November 15, 2006.

The purchase of the 24 suite (2-1BR, 22-2BR) Prescott property was through $236,000 in cash, from the proceeds of sale of the Orangeville building, $504,000 (60% LTV) through a new first mortgage, and $100,000 through the issuance of 200,000 InterRent shares at a price of $0.50/share.

The sale of the three GTA buildings, and the one in Orangeville, for gross proceeds of $2,495,000 represents an average premium of 46% over the $1,709,000 net purchase price of the buildings, acquired between 1998, and 2002, and a 50% average premium to their book values. The sale prices were within an average of 1.25% of a recent appraisal of the properties by an independent valuator.

Commenting on the transactions, Michael Newman, President and CEO of InterRent stated, "Both transactions are in line with our previously stated strategy of clustering our property acquisitions in communities where we already have a presence, and in divesting of our smaller buildings within the GTA at prices well above their purchase price and book value. The twenty-four unit acquisition in Prescott increases our holdings in that community by 50% and will result in lower operating costs across our entire Prescott portfolio. We have also gained $1,655,000 in resources which we may now redeploy, and have sold buildings with an average of 6.5% capitalization rate, and completed an acquisition with a going in capitalization rate of 9.5%."

InterRent is a rapidly expanding, growth oriented real estate company engaged in building shareholder value through the acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 1,234 apartment suites under ownership in Ontario, including the transactions outlined above.

InterRent's Board of Directors has also recently announced that it will be seeking shareholder approval at a Special Meeting of Shareholders to be held on November 24, 2006, for its proposed acquisition of the property portfolio of the Silverstone group and proposed conversion into a real estate investment trust structure by way of plan of arrangement under the Business Corporations Act (Ontario).

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable 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 publicly filed information which may be 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.

In particular, there is no assurance that the proposed reorganization specified in this release or the proposed acquisition of the Silverstone portfolio will be completed.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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