OTTAWA, ONTARIO–(Marketwired – Nov. 9, 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 two properties, totaling 123 suites, within the city of Burlington, Ontario.
The two properties, which are being acquired from the same vendor, consist of a 57 unit mid-rise building located at 455 Maple Avenue, and a 66 unit townhouse complex located at 1259-1275 Brant Street. The acquisition is expected to be completed by the middle of December at a purchase price of $21,000,000 and with a going in capitalization rate of 4.1%.
455 Maple Avenue has 19 1-bedroom, 22 2-bedroom and 16 3-bedroom suites. The building rests on a large downtown lot and has recently undergone capital upgrades including balcony restoration, new windows and parking lot paving. The building offers scenic views of Lake Ontario and is just steps away from the Waterfront Trail along the lake. Located in a desirable residential neighbourhood and one block away from Joseph Brant Hospital, the property is surrounded by parks, schools, shopping, and restaurants. There is convenient access to public transportation, the QEW and the Burlington Skyway Bridge.
1259-1275 Brant Street contains 4 1-bedroom, 47 2-bedroom and 15 3-bedroom townhomes that have been well maintained and have private backyards. The large 3.8 acre site is ideally located on Brant Street with direct access to the region’s main highways including highway’s 403, 407 and the Queen Elizabeth Way. The property is located in a predominantly residential neighbourhood and within close proximity of several big-box retailers, restaurants and services including Costco, Sobeys, Best Buy, SilverCity Burlington Cinemas and Milestones.
InterRent views this as an opportunity to acquire two properties well maintained properties in a strong market. The REIT believes that further Unitholder value will be created once the property is repositioned to InterRent’s standards. The properties also increase synergies with InterRent’s current Burlington portfolio.
“Burlington is a market that the REIT has targeted for growth and we look forward to rolling out InterRent’s repositioning program at these properties in order to realize their full potential and 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 informa tion 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)
InterRent Real Estate Investment Trust
Curt Millar, CA
Chief Financial Officer
(613) 569-5699 Ext 233
(613) 569-5698 (FAX)