InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

July 12, 2007 08:00 ET

InterRent REIT Completes Acquisition in Ottawa and Sarnia

Brings Total Number of Apartment Suites to 3,802

TORONTO, ONTARIO--(Marketwire - July 12, 2007) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today it has completed the acquisition of four apartment buildings with 239 suites, in Ottawa and Sarnia, Ontario, for $17.5 million, or $73,295 per suite.

The acquisitions bring the number of apartment suites under InterRent's ownership and under contract, to 3,802. In the first half of 2007, InterRent has acquired 1,974 suites, representing an increase of 108% since the beginning of the year.

In Ottawa, the REIT acquired two buildings, with 179 suites, for $15.5 million, or $86,550 per suite. In Sarnia, the REIT acquired two buildings, with 60 units, for $2.25 million, or $33,750 per suite. With these acquisitions, InterRent now has 556 and 276 suites in Ottawa and Sarnia respectively.

"These acquisitions demonstrate our ability to deliver on our growth strategy as outlined during InterRent's recent $50.0 million public offering," said Michael Newman, President and Chief Executive Officer. "We will continue to view acquisition opportunities in Ontario's multi-residential real estate market that will maximize unitholder value."

The buildings were acquired through a combination of cash from a recently completed equity offering, the issuance of 456,557 units from treasury (the "REIT Units"), at a price of $5.09/unit, and available credit lines. The REIT Units issued to the vendor as partial consideration for the transaction will be subject to a statutory four month hold period. The acquisitions result in InterRent having acquired or under contract a total of 3,802 suites, of which, 1,974 suites were acquired in the first half of 2007, representing an increase of 108% during such period.

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 3,189 apartment suites under ownership and 613 suites under contract, for a total of 3,802 apartment suites.

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.

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.

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

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