NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ottawa, Ontario (January 17, 2019) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) announced today that it has entered into an unconditional agreement to acquire a portfolio of 5 properties in Montreal totaling 253 suites for $59,000,000.
The 5 properties are located in the sought-after neighbourhoods of Westmount, Hampstead, and Notre-Dame-de-Grâce and are composed of a desirable suite mix featuring 2 bachelor, 100 one-bed, 140 two-bed, and 11 three-bed apartments. The portfolio has undergone capital upgrades including modernized elevators, new boilers, upgraded balconies and high end in-suite finishes.
The Westmount properties, located at 4560 Sainte-Catherine St W and 2054 Claremont Avenue, are in close proximity to the new McGill University Health Centre Hospital and the Vendome metro station. The properties are also minutes away from Westmount’s main retail node that includes banks, restaurants and grocery stores. The Hampstead properties, 5051 Clanranald Avenue and 5015-5025 Clanranald Avenue, are situated off the popular and retail-oriented Queen Mary Road and within walking distance of McDonald Park. These properties allow for quick access to the Décarie Expressway and the Snowdon metro station which are less than 600 metres away. Finally, 6950 Fielding Avenue in Notre-Dame-de-Grâce is adjacent to the large Loyola Park and located within close proximity of Concordia University’s Loyola Campus.
This acquisition will bring InterRent’s Montreal total to 1,898 apartments and is expected to close mid-February. The purchase will be financed through cash and existing CMHC mortgages.
InterRent also announced today that it has sold its portfolio in Sault Ste Marie, Ontario with properties located at 250 Albert St E, 62 & 76 Allard St, 721 & 731 Pine, 602 & 614 MacDonald, 43, 47 & 55 Lewis Road, 136 Cambridge Place, 519 Boundary Road, and 17 Terry Fox Place. The sale of the 7 properties, 349 suites, was for a combined price of $35,300,000.
“This is an exciting opportunity for the REIT as we continue to grow and add scale in one of our core markets. These acquisitions are a great addition to our Montreal portfolio, as each property features many positive attributes in very desirable neighborhoods. The acquisition portfolio will add to the REIT’s economies of scale and operational efficiencies within Montreal, “said Mike McGahan, CEO.
“Despite our strong operating
history in our Sault Ste Marie portfolio, this sale continues to follow through
on our stated strategy of recycling capital from our non-core markets and into
new opportunities within our core markets,” McGahan said.
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 objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) to maintain a conservative payout ratio and balance sheet.
Forward Looking Statements
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, CFA||Curt Millar, CPA, 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.