Press release from Marketwire
InterRent Announces $9.3 Million Acquisition in Toronto, Ontario
Monday, July 09, 2012
OTTAWA, ONTARIO--(Marketwire - July 9, 2012) -
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 entered into an unconditional agreement to acquire a high-rise property in Toronto, Ontario.
The complex is located at 2304 Weston Road and consists of 96 suites (48 1-bedroom, 36 2-bedroom and 12 3-bedroom) and 122 parking spaces (87 underground and 35 surface). The property is located between St. Philips road and Church Street and is in a conveniently located rental neighbourhood. Backing onto the Humber River, the property offers access to the Park Trail and is across from the Weston Golf and Country Club. There is easy access to the TTC, Weston Go Station as well as Highway 401.
The acquisition is expected to be completed in August at a purchase price of $9,300,000. The property is being purchased with a going in capitalization rate of 6% and is immediately accretive to the REIT. The acquisition will be financed through a new short term first mortgage while the property is being repositioned.
"This is a well positioned property in a strong mid-tier GTA rental market and is ideally situated 50 meters from our existing property at 2336 Weston Road. This purchase has a solid going in cap rate, upside potential and adds more scale and efficiency to our operations in Toronto. With this purchase we will have acquired 1,000 suites so far this year, all of them in strong rental markets that we have targeted for growth," 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.
Forward Looking Statements
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mike McGahan InterRent Real Estate Investment Trust Chief Executive Officer (613) 569-5699 Ext 244 (613) 569-5698 (FAX) firstname.lastname@example.org
Curt Millar, CA InterRent Real Estate Investment Trust Chief Financial Officer (613) 569-5699 Ext 233 (613) 569-5698 (FAX) email@example.com www.interrentreit.com
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.