Press release from Marketwire
InterRent Announces $29 Million Acquisition in National Capital Region
Tuesday, November 22, 2011
InterRent Announces $29 Million Acquisition in National Capital Region09:59 EST Tuesday, November 22, 2011OTTAWA, ONTARIO--(Marketwire - Nov. 22, 2011) -NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESInterRent Real Estate Investment Trust (TSX:IIP.UN)(TSX:IIP.DB) ("InterRent") announced today that it has entered into an unconditional agreement to acquire Le Strasbourg, a complex of 4 apartment buildings aggregating 490 residential suites, situated in Aylmer, Quebec within the National Capital Region. Le Strasbourg is located within a neighbourhood consisting primarily of residential single family homes, condominiums and parks with a view of the Ottawa River and the Aylmer Marina. Le Strasbourg rests within direct proximity of InterRent REIT's operational headquarters in Ottawa. The property includes 2 high rises and 2 low rises, all with elevator service, and is furnished with several resident focused amenities. The large 12.95 acre site includes a separately deeded 1.6 acre parcel of undeveloped land. The acquisition is expected to be completed on or about December 31st, 2011 at a purchase price of $28,775,000 or $58,725 per suite. The property is being purchased with a going in capitalization rate of 6.9% and is accretive to InterRent on a Funds From Operations and Adjusted Funds From Operations basis. As part of the repositioning of the portfolio that began in late 2009, InterRent has invested heavily in its existing portfolio, has disposed of assets that are non-core to its growth objectives and is focused on growth in a structured and prudent manner. The addition of Le Strasbourg represents a 12% suite increase to InterRent's portfolio in an accretive manner, and together with 3 other recent purchases, accounts for a total of 732 new suites purchased in 2011, bringing suites under ownership to 4,458. InterRent is actively seeking synergistic and accretive acquisitions through a strong broker network and self directed private sources. "This acquisition represents a unique opportunity to enter the Quebec market in a manner where we can obtain immediate synergies with our current operational staff located in Ottawa", said Mike McGahan, CEO. "We feel that there is untapped value in Le Strasbourg through repositioning the site as the premier rental option in Aylmer by using our proven formula of decreasing ongoing operational expenses through planned capital expenditures, providing a high quality product and first rate service". About InterRentInterRent is a 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.Forward Looking StatementsThis 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.FOR FURTHER INFORMATION PLEASE CONTACT: Mike McGahanInterRent Real Estate Investment TrustChief Executive Officer(613) 569-5699 Ext 244(613) 569-5698 (FAX)firstname.lastname@example.orgORCurt Millar, CAInterRent Real Estate Investment TrustChief Financial Officer(613) 569-5699 Ext 233(613) 569-5698 (FAX)email@example.comThe TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.