InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

November 13, 2007 07:30 ET

InterRent REIT Announces Agreements to Acquire 162 Apartment Suites in Kingston and Sudbury, Ontario for $6.8 Million

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2007) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced it has entered into conditional Agreements of Purchase for the acquisition of 69 apartment suites in Kingston and 93 in Sudbury, Ontario for $6.8 million ($41,975 per suite). The purchases, which are conditional on completion of due diligence by InterRent, are at a price below 50% of replacement cost, and are scheduled to close in January of 2008. The new acquisitions are projected to contribute $1.135 million in annual revenues at current vacancy and rental rates. Financing for the transactions will be from a recently completed equity raise of $5.09 Million, a $500,000 Vendor Take Back (VTB) mortgage for 5 years at 2.5% payable as to interest only, and InterRent's $50 Million acquisition facility.

Commenting on the acquisitions, Michael Newman, InterRent's CEO, stated, "These purchases will increase the number of units we currently own in Kingston by over 30% and our eastern Ontario portfolio by 14%, and are expected to result in greater operating efficiencies and cost savings. Our entry into the Sudbury market is our third into northern Ontario this year, and will increase the number of InterRent suites in the region to 413, representing 9.9% of InterRent's overall portfolio. We continue to seek out accretive acquisition opportunities significantly below replacement cost, in growing markets in Ontario, with low vacancies and a stable renter demographic. Our current vacancy rate in eastern Ontario is 1.86% and 0% within our northern Ontario portfolio."

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 contract, for a total of 4,169 suites across the Province of 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.

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