InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust

August 13, 2007 09:15 ET

InterRent REIT Passes 4,000 Unit Ownership Mark With Acquisition of 48 Apartment Suites in Sault Ste. Marie

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today it has entered into conditional agreements of purchase with arms length parties, to acquire two buildings containing a total of 48 units in Sault Ste. Marie, Ontario, for $2.15 million or $44,792 per suite. The purchase price represents an average "going in" capitalization rate of 9.45%, based on current operating statements. The buildings are adjacent to InterRent's recently acquired portfolio of 223 suites, and increases the REIT's unit ownership in northern Ontario to 320 suites. The purchase agreements are conditional upon completion of due diligence and are scheduled to close in early October. The acquisitions will be financed from the proceeds of InterRent's recent sale of two buildings in the GTA, and CMHC insured first mortgages.

Commenting on the acquisitions, Michael Newman, InterRent's CEO, stated, "These acquisitions are in line with our stated objective to increase unitholder value through investing in higher capitalization rate, lower per suite price properties in Ontario's secondary markets. The positive CAP rate spread between our most recent purchases in Sault Ste. Marie, and our two recent dispositions in the GTA is over 350 basis points, while the per suite price differential is on average, approximately $65,000 in our favour. Sault Ste. Marie continues to experience positive economic growth due to the recent purchase of Algoma Steel, and we intend to grow our portfolio in the city as accretive opportunities present themselves. We expect to extract additional operational cost savings due to the proximity of these two buildings to our currently owned properties."

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 3,795 apartment suites under ownership and 212 suites under contract, for a total of 4,007 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.

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