Business
InterRent Announces Acquisitions and Closings Resulting in Portfolio Growth of 105%
InterRent Announces Acquisitions and Closings Resulting in Portfolio Growth of 105%.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX-Venture-IIP\n\nTORONTO, April 13 /CNW/ - InterRent International Properties Inc.\n(\"InterRent\" or the \"Company\") today announced that it has continued the\ndeployment of the proceeds from its $8.0 million equity financing in December\n2004 by entering into conditional agreements of purchase with arms length\nparties, to acquire a total of 224 apartment units in London, Ottawa,\nHamilton, Toronto and Trenton, for a total cost of $12 million or $53,705 per\nunit. Additionally, InterRent also announced the completion of its previously\ndisclosed purchase of 180 apartment units in London, Kingston, Trenton and\nHamilton, for approximately $8.0 million, or $44,000 per unit, and the\nsuccessful closing of its previously announced sale of a 3 unit building in\nthe GTA at a capital gain of $76,000. Upon the closing of these transactions,\nthe Company's portfolio will increase from 383 units to 787 units across\nOntario, an increase of 105%, and the Company will have deployed 85% of the\nfunds raised in the December 2004 equity financing.\nThe suite composition of the $12 million in acquisitions was 5x3 bedroom,\n118x2 bedroom, 79x1 bedroom and 22 bachelor apartments with an average monthly\nrent of $681.00, with a large percentage of tenants paying their own hydro.\nThe occupancy rates at the properties was 97% at the end of March. Upon the\nexpected completion of these transactions, the Company's portfolio has grown\nover the past year by more than 100%, to a book value of approximately \n$37.0 million. The acquisitions are scheduled to close between mid-April and\nJune 15, 2005, and are subject to completion of due diligence by InterRent and\nthe approval of the share issue portion of the purchase price by the TSX.\nThe $12,030,000 purchase price will be satisfied by the assumption of\n$5,370,000 in existing first mortgages with an average interest rate of 5.9%\nand maturity dates extending from two to fifteen years, a new ten year CMHC\ninsured first mortgage for $1,575,000 at 5.25%, a new two and a half year CMHC\ninsured second mortgage for $552,000 at 3.99%, Vendor Take Back (VTB) first\nand second mortgages of $1,608,000 at rates ranging from 2.5% to 6%, and\n$2,519,000 in cash from the proceeds of InterRent's recently completed equity\nfinancing, and by the issuance of $445,680 worth of InterRent shares based o...