InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

December 21, 2006 09:15 ET

InterRent Real Estate Investment Trust Announces Acquisition of 153 Apartment Suites

TORONTO, ONTARIO--(CCNMatthews - Dec. 21, 2006) - InterRent Real Estate Investment Trust.,("InterRent"or the "REIT") (TSX VENTURE:IIP.UN)(FRANKFURT:IBV) today announced that it has completed the acquisition of a 153 suite multi-residential complex in Sarnia, Ontario, a community of 70,000 people. The $7.019 Million ($45,876/suite) purchase price, InterRent's largest single acquisition to date, is being financed by the assumption of existing conventional first and second mortgages, with an average remaining term to maturity of 5.5 years, and an average weighted interest rate of approximately 5.35%. The "going in" purchase capitalization rate is 7.56% representing a positive investing spread of 221 basis points. The equity portion of the acquisition will be derived from the proceeds of several recently disclosed property dispositions in the GTA, and a recently completed $5.3 million private placement. The property contains 1 three bedroom, 93 two bedroom, 57 one bedroom and 2 bachelor apartments. The average monthly rent for a two bedroom suite is $649, and for a one bedroom it is $529. Permits have also been received for the addition of one two bedroom, and two one bedroom suites in the building. The current vacancy rate for the building is 3.9%.

The REIT also announced the completion of the sale of a 13 unit apartment building in Hamilton, Ontario at a price of $850,000 ($65,384/suite). This transaction brings to seven the total number of small, non-strategic assets sold by InterRent this year.

Commenting on the acquisition, Michael Newman, CEO of InterRent REIT stated, "This transaction, our first as a REIT is in line with our strategy of continuing to build on our existing multi-residential property platform in Ontario, through the accretive acquisition of well located, under valued buildings. This transaction, combined with the recent acquisition of Silverstone Equities' Guelph and Stratford properties, brings to 653 the number of western Ontario buildings owned by the REIT, representing 36% of the REIT's total portfolio of 1,808 apartment suites."

InterRent REIT is a rapidly expanding, growth oriented real estate investment trust engaged in building unit holder value through the acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 1,808 apartment suites under ownership in 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 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 Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information