INTERRENT ANNOUNCES $24 MILLION ACQUISITION IN HAMILTON, ONTARIO
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ottawa, Ontario (July 24, 2014) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent”) announced today that it has completed the purchase of a property ideally situated in Hamilton’s east end for a combined purchase price of $24,095,500.
The property is located in the east end of Hamilton, and includes a combination of garden homes (119 3-bedroom homes) and a high rise apartment building (215 suites). The property is situated in a predominantly residential area, surrounded by green space, parks and schools. The Go Station as well as the Red Hill Valley Parkway (which feeds into the Queen Elizabeth Way) are within close proximity.
The property is being purchased with a going in capitalization rate of 5.2% and is immediately accretive to the REIT. The acquisition will be financed through a conventional first mortgage while the property is being re-positioned. The acquisition is expected to close on or before July 31, 2014.
“With our experience in the Hamilton market and the team we have assembled in this region, we believe that this acquisition is in a good geographical location and is a strong addition to the REIT’s portfolio. We believe that our repositioning strategy with this property will be able to create value for our Unitholders,” 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 about InterRent please contact:
|Mike McGahan||Curt Millar, CA|
|Chief Executive Officer||Chief Financial Officer|
|Tel: (613) 569-5699 Ext 244||Tel: (613) 569-5699 Ext 233|
|Fax: (613) 569-5698||Fax:(613) 569-5698|
|web site: www.interrentreit.com|
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for the adequacy or accuracy of this release.