InterRent Property Acquisition Update
Ottawa, Ontario(February 12, 2018) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent”) announced today that it has reached an unconditional agreement to acquire 2 properties, totalling 172 suites, in Grimsby, Ontario for $21,075,000.
The properties are located at 1 and 3 Slessor Boulevard in Grimsby (Hamilton area), Ontario and are comprised of a four-storey building and an eight-storey building with a combined total of 172 suites. There are 43 bachelor suites, 39 one-bedroom suites, 67 two-bedroom suites, and 23 three-bedroom suites.
1 and 3 Slessor Boulevard, the city’s dominant rental property, is located next to a high-traffic retail plaza, which is comprised of a nationally branded grocery store, pharmacy, and hardware store. It is located within very close proximity of the Queen Elizabeth Way, and within close proximity of the future Grimsby GO Train Station. The purchase price of $21,075,000, or $122,529 per suite, represents a going-in cap rate of 4.5%. The purchase will be secured with conventional financing and is expected to close in February of this year.
InterRent has recently closed on 2 other properties, one in Montreal, Quebec and one in Hamilton, Ontario.
The Montreal property consists of 48 suites at 5775 Sir Walter Scott Avenue, a low-rise building immediately adjacent to its existing buildings at the corner of Sir Walter Scott Avenue and Kildare Street bringing the REIT’s ownership in the affluent neighbourhood of Cote Saint Luc to 829 suites. The building is comprised of 4 bachelor suites, 25 one-bedroom suites, and 19 two-bedroom suites and is located immediately adjacent to the REIT’s existing 174-suite complex, which should result in significant operational efficiencies. This property features a wide variety of resident amenities, including an outdoor pool, underground parking, and on-site laundry facilities, while also allowing residents to benefit from existing amenities at the adjacent buildings. The purchase was completed at a price of $5,250,000, or $109,375 per suite, representing a going-in cap rate of 4.2%. It was completed with the assumption of an existing CMHC-insured mortgage totaling $2,650,000.
The Hamilton property consists of 55 suites at 718 Lawrence Road in Hamilton, Ontario. The property is located in Rosedale neighbourhood of Hamilton, and is close to various amenities including shopping, banks, educational institutions, outdoor recreation, and the city’s downtown core, which features various inter- and intra-city mass transportation networks. The purchase closed at a purchase price of $6,000,000, or $109,091 per suite, which reflected a going-in cap rate of 4.2%.
“We are excited about these three separate off market additions to our portfolio which supports and confirms our conviction in the Montreal and Hamilton markets, representing two of our three core growth markets. We believe that our expansion into the Grimsby market with the purchase of 1 and 3 Slessor Boulevard will provide a great complement to our nearby Stoney Creek properties in the Hamilton market, while planning for the future expansion of the mass transit systems in the Greater Toronto and Hamilton Area,” 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.
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: email@example.com||e-mail: firstname.lastname@example.org||e-mail:email@example.com|
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