INTERRENT ANNOUNCES CLOSING OF $7 MILLION ACQUISITION
IN OTTAWA, ONTARIO
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ottawa, Ontario (February 25, 2014) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent”) announced today that it has closed on a previously announced property acquisition ideally situated in Ottawa’s west end for a purchase price of $7.2 million.
The property is located at the corner of Carling Avenue and Crystal Beach Drive, directly across from the Ottawa River, in the neighborhood of Crystal Beach and is adjacent to our previously announced acquisition that closed in May of 2013. Situated in a predominantly residential area, the property offers excellent views of the Ottawa River and is within close proximity to major bus transit routes as well as highway 417 and the Bayshore Shopping Center.
The Property consists of 2 1-bedrooms; 28 2-bedrooms; and 24 garden homes. Combined with our previous acquisition in Crystal Beach, the REIT now has 141 rental units within close proximity to the former Nortel campus. This campus is being refitted and the Department of National Defence has reported that it expects to have 8,500 employees working out of this location within six years with the first 3,300 scheduled to arrive late in 2015. The properties are being purchased with a going in capitalization rate of 5.75% and is immediately accretive to the REIT. The acquisitions will be financed through a conventional first mortgage while the property is being repositioned.
“With our years of experience in the Ottawa market, we believe that this acquisition is in a great geographical location and represents a strong addition to the long term strategy of growing the REIT’s portfolio where we believe we can 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|
The TSX has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.