OTTAWA, ONTARIO–(Marketwired – Jan. 29, 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 agreement to purchase a 280 suite high-rise building ideally situated in Côte Saint-Luc on the Island of Montreal, Quebec.
The building is located at 5501 Adalbert Avenue, just off of Chemin de la Côte-St-Luc, and within 2 blocks from InterRent’s properties on Kingsley Road and Trent Avenue. This property is situated in a predominantly residential area of Côte-St-Luc and within close proximity to many parks, public transportation, schools, and a variety of amenities at the Centre Commercial Côte St-Luc shopping centre. There is convenient access to downtown Montreal via the Montreal West train station and highways 15, 20, 40 and 520. The building is comprised of 146 1-bedrooms, 127 2-bedroom, and 7 3-bedrooms suites.
This well-maintained institutionally owned property has recently undergone a capital investment program. As such, InterRent will be able to focus its repositioning efforts on utility saving measures, which are anticipated to reduce ongoing utility costs, and in-suite upgrades to achieve similar market rents that InterRent is realizing in its neighbouring properties.
The purchase is expected to be completed by mid-March at a purchase price of $32,400,000, or $115,714 per door. The acquisition has a going in capitalization rate of 5.6% and is immediately accretive to the REIT. Financing will take place through a new conventional first mortgage and from the proceeds of the bought deal equity offering announced on January 28, 2015.
InterRent has identified Montreal as an important market for growth. The REIT currently owns over 500 suites in close proximity to this property which will bring the total suite count in Montreal to 781.
“This is an ideal acquisition for InterRent as it allows us to grow in the Montreal market while leveraging our knowledge, experience and branding from our existing Côte St-Luc operational team and properties. We have done very well in this node of Montreal since our initial purchase in 2012, and we continue to look for further growth opportunities in this market. We believe that the addition of this well maintained property will 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.
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)