InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

August 17, 2009 08:45 ET

InterRent REIT Disputes NorthWest Actions and Confirms That Its Elected Trustees Remain Validly in Office

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2009) - InterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") announced on August 14, 2009 that it had received a Notice of Removal of Trustees from NorthWest Value Partners Inc. ("NorthWest") purporting to remove all of the Trustees from office pursuant to the provisions of InterRent's amended and restated Declaration of Trust. In connection with such notice, NorthWest claimed to have the written "consents" of unitholders of the REIT holding not less than a majority of the outstanding trust units of the REIT and the special voting units of the REIT that would be entitled to vote at a meeting of unitholders, consenting to such removal.

InterRent believes that the purported consents delivered by NorthWest are invalid and confirms that its current trustees remain the validly elected trustees of the REIT and that they remain duly empowered to continue to carry on the business of the REIT. InterRent also confirms that NorthWest's most recent actions are not in accordance with InterRent's Declaration of Trust. InterRent also has serious concerns that certain of NorthWest's actions in connection with the arranging for its purported "unitholder consents" may have constituted a breach of applicable securities laws.

InterRent has confirmed that its previously announced private placement financing transaction has now been fully funded, with InterRent holding executed subscription agreements from each of its 41 institutional and high net worth subscribers who, in the aggregate, have subscribed for the maximum amount of $14 million which is being held in trust.

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 4,033 apartment suites under ownership.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of 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". In particular, but without limitation, there is no assurance that InterRent's previously announced private placement transaction will be completed on the terms disclosed or at all. 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. 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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