OTTAWA, ONTARIO–(Marketwired – April 27, 2016) –
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 is continuing to execute on its capital recycling program by entering into an unconditional agreement to sell the REIT’s properties in Kingston, Ontario. As previously announced, InterRent has been actively pursuing an asset allocation strategy of monetizing value created by the REIT in smaller non-core markets and recycling capital into core growth markets.
Totaling 202 suites, the properties located at 276 and 286 Conacher Drive; and, 44, 54, 66, 80 and 118 Virginia Street are being sold for $21,210,000, or $105,000 per suite. The transaction is expected to be completed in May of this year with net proceeds from the disposition of approximately $9.2 million.
The sale of REIT’s Kingston portfolio, together with the its recently announced dispositions in Belleville, Brantford and Brampton, brings the total sales in 2016 to 461 suites, for a combined sale price of $52,460,000, or $113,796 per door.
“Although we have been very pleased with the performance of our Kingston portfolio, we are committed to executing on the REIT’s strategy of recycling capital from our non-core properties and redeploying those funds into new repositioning opportunities within our core markets. We believe that this strategy will provide greater opportunities for scale, long term growth and value creation 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)
(613) 569-5699 Ext 226
(613) 569-5698 (FAX)
Curt Millar, CA
Chief Financial Officer
(613) 569-5699 Ext 233
(613) 569-5698 (FAX)