InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

February 19, 2009 07:47 ET

InterRent REIT Announces Completion of Acquisition and Disposition Transactions, and Mortgage Re-Financings

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2009) -


InterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") announced today that it has now completed the previously announced acquisition from an arms length party of a 68 unit high rise building in Sault Ste. Marie at a gross purchase price of $3,418,000 ($50,264/suite). The acquisition brings to 388 the number of units owned by InterRent in Northern Ontario, a portfolio with a less than 1% vacancy rate over the past year.

InterRent also announced the completion of the previously announced sale of two buildings, with a total of 22 units, located in Vanier, Ontario, at a net sale price of $1,211,613 ($55,733/suite). The property was acquired in 2004 for a gross purchase price of $1,056,000. The operating results of both Vanier properties have been classified as "Discontinued Operations" in InterRent's most recent financial statements.

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."

Mortgage Financings/Re-financings

InterRent also announced today that it has now refinanced a total of $18,773,000, or 55% of its mortgages maturing in 2009/10, for a five year term, at an average 130 bps. below previously existing mortgage interest rates. The new CMHC insured, and conventional first and second mortgages, including a first mortgage of $2.4 million, on the newly acquired Sault Ste. Marie property, is at an average mortgage interest rate of 3.76%. The new mortgage interest rates are projected to save InterRent approximately $250,000 in mortgage interest rate costs on an annual basis.

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 4,027 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.

Contact Information