OTTAWA, ONTARIO--(Marketwire - March 1, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today that it has an entered into unconditional agreements to acquire a townhome complex in Ottawa, Ontario and an apartment building in St. Catharines, Ontario.
The Ottawa property is located at 1901 - 1917 Ogilvie Road and 1910 - 1922 Elmridge Drive and consists of 118 townhomes. The townhomes are situated in a predominantly residential neighborhood with many schools and parks nearby as well as amenities such as retail shopping locations, the Gloucester Centre and family activity centres. The property is easily accessible as it is nearby major bus transit routes as well as the Queensway. The property is in close proximity to many employers including the CSIS headquarters, that is undergoing significant expansion, and the NRC headquarters.
The acquisition is expected to be completed by the end of March at a purchase price of $15,650,000. The property is immediately accretive to InterRent as it is being purchased with a going in capitalization rate of 5.7%.
The St. Catharine's property is located at 70 Roehampton Street in a quiet rental neighborhood within close proximity to many amenities including parks, shopping malls and restaurants. The 64 suite building has condominium status and is comprised of 12 1-bedroom, 41 2-bedroom and 11 3-bedroom apartments. The location is well serviced by public transportation and offers convenient access to the Queen Elizabeth Way.
The acquisition is expected to be completed by the end of March at a purchase price of $5,990,000. The property is immediately accretive to InterRent as it is being purchased with a going in capitalization rate of 6.0%.
Short term financing will be put in place on both properties while they undergo a repositioning program. Upon completion, the properties will be financed through long term CMHC insured mortgages.
"The acquisitions will add more scale and drive further efficiencies in their respective areas. We believe that the properties will benefit from our knowledge of the local markets, existing resources and our repositioning expertise," said Mike McGahan, CEO.
InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.
InterRent's strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions.
InterRent's primary objective is to use the proven industry experience of the Trustees, Management and Operational Team to: (i) provide Unitholders with stable and growing cash distributions from investments in a diversified portfolio of multi-residential properties; (ii) enhance the value of the assets and maximize long-term Unit value through the active management of such assets; and (iii) expand the asset base and increase Distributable Income through accretive acquisitions.
This news release contains "forward-looking statements" within the meaning applicable to 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 most recently publicly filed information 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.
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