InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

December 17, 2008 08:36 ET

InterRent REIT Announces Acquisition and Disposition Transactions

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2008) -


InterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") announced today that it has now completed the previously announced sale of three walk-up buildings, representing 26 units, in Vanier, a suburb of Ottawa, Ontario, to an arms length party. The property was acquired in 2005 for $1,719,000. The total, gross sale price was $1,825,000. An additional two buildings with 22 units, also located in Vanier, which sale was announced previously, have now had all conditions waived and are now scheduled to close early in the new year at a gross sale price of $1,225,000. The buildings were acquired in 2004 for $1,056,000. The operating results of both Vanier properties have been classified as "Discontinued Operations" in InterRent's most recent financial statements.

At the same time InterRent has also entered into a conditional Agreement of Sale for an 18 unit building in Toronto's Parkdale neighbourhood for a gross sale price of $1,300,000. The building was acquired in 2005 for $1,150,000. The sale is expected to be completed in January of 2009.

InterRent has also entered into a conditional Purchase Agreement with an arms length party, for the acquisition of a 68 unit high rise building in Sault Ste. Marie at a price of $3,360,000. The transaction is conditional on InterRent securing favourable first mortgage financing, and is expected to close in January of 2009. The equity portion of the purchase price will be from the sale of the two Vanier properties. The acquisition, when closed, will bring to 339 the number of units owned by InterRent in Sault Ste. Marie, a portfolio with a less than 1% vacancy rate over the past year.

Commenting on the transactions, Michael Newman, InterRent's CEO stated "These transactions are in keeping in line with InterRent's strategy of disposing of small, non-strategic assets at low capitalization rates, and redeploying the proceeds of sale into larger buildings at significantly higher capitalization rates. It also confirms our future direction to build scale in communities with low vacancy rates, where InterRent already maintains a significant presence, thereby reducing operating and management costs."

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 3,981 apartment suites currently 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 Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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