InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

December 17, 2007 16:32 ET

InterRent REIT Announces $25 Million Offering of Convertible Debentures

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2007) -


InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") is pleased to announce that it has entered into an agreement to sell to a syndicate of underwriters led by Scotia Capital Inc., and including National Bank Financial Inc., Blackmont Capital Inc., and Dundee Securities Corp., on a bought-deal basis, $25,000,000 principal amount of Convertible Unsecured Subordinated Debentures (the "Debentures"), with a coupon rate of 7.0% per annum. The Debentures will be convertible at the holder's option into units of InterRent (the "Units") prior to maturity at a conversion price of $4.60 per Unit. The Debentures will mature on January 31, 2013. InterRent intends to use the net proceeds of the offering to reduce indebtedness and to fund future acquisitions. Closing of the offering is expected to occur on January 11, 2008 and is subject to regulatory approval.

About InterRent

InterRent is a rapidly expanding, growth oriented real estate investment trust engaged in building unitholder value through the accretive acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 4,007 apartment suites under ownership, and 162 under conditional purchase contract, for a total of 4,169 suites in the province of Ontario.

Distribution in Canada Only

This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

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.

In particular, there is no assurance that the specified equity issue will be completed on schedule or at all as the completion will be conditional upon prevailing market conditions. There is no assurance that the specified acquisitions will be completed within the anticipated timeframes expressed above or at all. These transactions are all conditional upon financing. There is no assurance that sufficient funds will be raised in order to complete all or a portion of these acquisitions.

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

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