INTERRENT ANNOUNCES $55.7 MILLION ACQUISITION IN OTTAWA, ONTARIO AND $22.6 MILLION OF DISPOSITIONS IN TWO NON-CORE MARKETS
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Ottawa, Ontario (April 4, 2016) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent”) announced today that it has entered into an unconditional agreement to acquire “Parkway Park” Apartments, a 418 suite apartment complex in Ottawa, Ontario.
The expansive apartment complex encompasses 17.2 acres of land and is located in the west end of Ottawa within the Greenbelt, in a neighbourhood known as Centrepoint. With over 2,000 feet of frontage along Baseline Road near Woodroofe Avenue, the site is only 600m from the current BRT (Bus Rapid Transit) Station at Algonquin College. The city has announced plans to expand Ottawa’s LRT line and to develop this location into Ottawa’s Southernmost LRT station, which will be known as the “Baseline Station”. The underground tunnel infrastructure for the LRTextension has already been incorporated into the recent Algonquin College expansion.
Within this neighbourhood are several key employment, education and retail locations including: Algonquin College (~21,000 full time students), City of Ottawa Offices, Ontario Provincial Court Offices, College Square Shopping Centre, Centrepoint Theatre, Ottawa Public Library, and several elementary and secondary schools. Parkway Park is also ideally situated within 800 meters from InterRent’s Forest Ridge community, which has 393 suites, bringing InterRent’s suite count in this node to 811 suites.
Parkway Park is located at located at 2045 Baseline Road, 2172 Recency Terrace and 1382 Highgate Road and consists of 176 1-bedroom, 227 2-bedrooms and 15 3-bedrooms suites, and spans a total of 17.2 acres. The property is being purchased for $55,700,000 or $133,253 per suite with a going in cap rate of 5.3%. The purchase is scheduled to close in May of 2016 and will be financed through a conventional first mortgage.
InterRent also announced today that it has entered into an unconditional agreement to sell their Brantford, Ontario properties located at 19 Lynnwood Drive and 120, 126 & 130 St Paul Avenue. The sale is expected to be completed in July of 2016 at a combined price of $11,475,000 or $110,337 per suite.
Additionally, the REIT announced today that it has completed the sale of a previously announced disposition in Belleville, Ontario. The sale includes all of the REIT’s Belleville properties: 57 Bridge Street W; 414 Dundas Street W; and, 4 Applewood Drive, and was completed on March 29, 2016 at a combined price $11,100,000 or $100,000 per suite.
The sale of the Belleville and Brantford properties is supportive of the REIT’s current asset allocation strategy of monetizing value created by the REIT in smaller non-core locations, and to recycle that capital into core growth markets. Together with the recent sale of 26 June Avenue in Brampton, the completion of these two additional dispositions will bring the YTD total suites sold to 259 suites, at a combined price of $31,250,000 or $120,656 per door.
“This is an exciting opportunity for the REIT as we continue to grow and add scale in one of our core markets. We feel strongly about this Ottawa rental node due to a variety of factors including the positive results already seen from our 2015 purchase of Forest Ridge nearby and the long-term benefits the future LRT at Algonquin College will bring to the immediate area. Parkway Park will add to the REIT’s economies of scale and operational efficiencies within this neighbourhood and shall provide potential intensification opportunities for the future from its 17.2 acres of lands.
We are also extremely pleased with both dispositions as we continue to execute on our strategy of recycling capital from our non-core properties into new repositioning opportunities within our core markets, for continued long term growth and value for our Unitholders. As previously stated, our Unitholders will see more of this over the short to medium term” 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|
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