InterRent Real Estate Investment Trust
TSX : IIP.UN

InterRent Real Estate Investment Trust

June 06, 2007 09:30 ET

InterRent REIT to Acquire 239 Apartment Suites for $17.5 Million in Cash and Units

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today that it has entered into Agreements of Purchase for the acquisition from arms length parties of four apartment buildings with 239 suites, located in Ottawa and Sarnia, Ontario, for a total purchase price of $17.5 million ($73,295/suite). The buildings are being acquired through a combination of cash from a recently completed equity offering of REIT units, the issuance of 456,557 REIT units from treasury, at a price of $5.09/unit, and available credit lines. The issuance of the REIT units will be subject to a statutory four month hold period, and approval by the appropriate regulatory authorities. The purchases are projected to close in the first half of July 2007. The acquisitions bring to 3,802 the number of apartment suites, under InterRent's ownership and under contract, and to 1,974 the number of suites acquired in the first half of 2007.

The two buildings, with 179 suites being acquired in Ottawa for $15,492,500 ($86,550/suite) brings to 556 the number of suites owned by InterRent in the nation's capital. One, 83 suite building in the east end of the city, adjacent to Rockcliffe Park, is located close to Ottawa's Montfort Hospital, which is currently undergoing an expansion that will double its size There is an opportunity to add up to ten suites in the building as well as additional, unused land available for severance or re-development. The other, 96 suite building is located in Ottawa's rapidly growing Le Breton Flats development area of Centertown.

The two buildings in Sarnia, with 30 units each, are located next to a 153 suite complex also owned by InterRent, are being acquired for $2,025,000 ($33,750/suite), and brings to 276 the number of suites owned by InterRent in that city.

Commenting on the latest acquisitions, Michael Newman, InterRent's CEO, stated "The acquisition of the two buildings in Ottawa significantly increases the size of our portfolio, in a city where over the past six months our vacancy rate was below 1%., and provides us with the opportunity for cost savings and management efficiencies. The utilization of our REIT units as a significant part of the purchase price preserves cash for future acquisitions. The Sarnia acquisition, next to our 153 suite complex also adds to management synergies for our 1,335 suite western 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 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 www.sedar.com. 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.

Contact Information