OTTAWA, ONTARIO–(Marketwired – Nov. 27, 2015) –
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
InterRent Real Estate Investment Trust (TSX:IIP.UN) (“InterRent”) announced today that it has entered into an unconditional agreement to acquire a property in Le Plateau-Mont-Royal (Montreal). The property consists of 127 suites along with a ground floor commercial unit.
The building is situated on a prominent corner in the heart of the trendy Le Plateau-Mont-Royal, and overlooks one of Montreal’s largest parks, Parc La Fontaine. Steps away are the bustling streets of Avenue du Mont-Royal, Rue Saint-Denis and Boulevard St-Laurent which are popular entertainment, dining and shopping hubs for residents in the area. There is convenient access to the subways via Station Mont-Royal and McGill University and Notre-Dame Hospital are within close proximity.
The building is located at 1101 Rachel Street and consists of 94 1-bedroom, 33 2-bedrooms and a commercial ground floor retail unit. The property was purchased at a price of $21,550,000 or $168,000 per suite and at a going in cap rate for the acquisition was 4.6%. The purchase is scheduled to be completed in March of 2016 and will be financed through a conventional first mortgage.
Amenities within the 17 story high-rise include: a roof-top terrace with panoramic views of Mont Royal, the Montreal skyline and the St Lawrence River; a ground floor café; indoor leisure area with heated swimming pool, saunas and fitness area; on-site laundry; and an inviting grand lobby.
Additionally, InterRent announced today that it has entered into an unconditional agreement to sell 26 June Avenue in Brampton, Ontario, a 44 suite apartment building. The sale is being completed at a price of $197,000 per suite for a total of $8,675,000 and at a cap rate of 4.4%. The sale is scheduled to be completed in January of 2016. As the 26 June Avenue property is the only one the REIT owns in Brampton, and combined with the relatively small size of the building, management believed it was beneficial to monetize the value the REIT had created and recycle the capital into a core growth market.
“We are extremely pleased with both of these transactions as we execute on our strategy of recycling capital from our non-core properties into new repositioning opportunities within our core markets. The acquisition of 1101 Rachel Street is a rare opportunity to purchase a very well located asset in one of Canada’s primary metropolitan cities. We feel that this purchase will become a signature property for InterRent and provide Unitholders with long-term value,” 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.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Chief Executive Officer
(613) 569-5699 Ext 244
(613) 569-5698 (FAX)
(613) 569-5699 Ext 226
(613) 569-5698 (FAX)
Curt Millar, CA
Chief Financial Officer
(613) 569-5699 Ext 233
(613) 569-5698 (FAX)