INTERRENT ANNOUNCES $51 MILLION ACQUISITION IN HAMILTON, ONTARIO
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ottawa, Ontario (September 2, 2015) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or “REIT”) is pleased to announce that it has entered into an unconditional agreement to acquire a multi-family portfolio in Hamilton that will add 618 suites to the REIT.
The property is located in the east end of Hamilton, and includes four high rise apartment buildings: 77 Delawana Dr.; 11 & 40 Grandville Ave.; and, 50 Violet Dr. There is a total of 2 bachelors; 104 1-bedroom; 509 2-bedrooms; and, 3 3-bedrooms suites in the portfolio. The property is situated in a predominantly residential area and is within a short walking distance to several parks, schools, and the Eastgate Square shopping mall.
Currently serviced by several bus routes, the property is ideally located in relation to the recently announced extension of the GO Lakeshore West train to a new stop at Centennial Parkway. The provincial government has indicated that they are also speaking with the city of Hamilton to extend the announced Light Rail Transit project so that it would continue past the last stop, currently planned for Queenston Circle, and continue on to the EastgateSquare.
The property is being purchased for a total purchase price of $50,985,000 or $82,500 per door. The acquisition will be financed through a conventional first mortgage while the property undergoes a significant re-positioning program in order to reduce utility and long-term operating costs, increase occupancy and achieve the market rents that the REIT has been able to capture at its other properties in Hamilton. The acquisition is expected to close on or before November 30, 2015.
With this acquisition, InterRent has purchased 1,577 suites in 2015 for a total purchase price of $167,395,000, or $106,148 per door. All of the acquisitions in 2015 have been in line with the REIT’s stated strategy of expanding within InterRent’s core markets of Ottawa, the Greater Montreal Area and the Greater Toronto Area.
“We believe the Hamilton market is well positioned for excellent growth and this portfolio is located in a strong rental node. This acquisition is a strong addition to the REIT’s value creation strategy. With our experience in the Hamilton market and the team we have assembled in this region, we believe that our repositioning program for this property will create value for our Unitholders, similar to what we are experiencing with our previous Hamilton acquisitions.” 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||Brad Cutsey||Curt Millar, CA|
|Chief Executive Officer||President||Chief Financial Officer|
|Tel: (613) 569-5699 Ext 244||Tel: (613) 569-5699 Ext 226||Tel: (613) 569-5699 Ext 233|
|Fax: (613) 569-5698||Fax: (613) 569-5698||Fax:(613) 569-5698|
|e-mail: firstname.lastname@example.org||e-mail: email@example.com||e-mail:firstname.lastname@example.org|
The TSX has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.