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InterRent Announces Signing of Binding Letter Of Intent To Combine With Silverstone Equities; Followed By Anticipated REIT Conversion
InterRent Announces Signing of Binding Letter Of Intent To Combine With Silverstone Equities; Followed By Anticipated REIT Conversion.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX.V-IIP\nFrankfurt: I4N.F\n\nTORONTO, March 8 /CNW/ - InterRent International Properties Inc.,\n(\"InterRent\" or the \"Company\") today announced that it has signed a binding\nLetter of Intent with Silverstone Equities Inc., (\"Silverstone\") whereby\nSilverstone's general partner and limited partners would exchange their\npartnership units for securities of InterRent. The basis of exchange has not\nyet been determined and would be based upon a valuation by an independent\nvaluator of all of the assets, liabilities and operations of both entities.\nSimultaneously with the completion of the business combination, InterRent\nexpects to convert to a real estate investment trust structure under the\nproposed name of \"InterRent Multi Residential Real Estate Investment Trust\".\nThe business combination is subject to a number of conditions, including the\ncompletion of definitive documentation, the receipt of a valuation of\nInterRent and Silverstone that is satisfactory to both parties, completion of\ndue diligence investigations by both parties, and the receipt of all required\nregulatory, Exchange and security holder approvals. The transaction is\nexpected to be completed on or before August 31, 2006.\nSilverstone Equities Inc.(or its nominee companies) is the general\npartner of three limited partnerships, Park Place Equities 2000, Redwood\nTerrace Cambridge Co-Tenancy and 90-102 Silvercreek Parkway Inc. The\npartnerships are the owners of an aggregate of 577 apartment units located in\nMississauga, Guelph, Cambridge and Stratford, Ontario.\nInterRent International Properties Inc. through two wholly owned\nsubsidiaries, InterRent Properties Inc. and InterRent Realty Corp. owns an\naggregate 1,146 apartment units in Toronto, Ottawa, Hamilton, London, Niagara\nFalls, Trenton, Belleville, Kingston, and Prescott, Ontario, with an\nadditional 63 units in Hamilton under contract.\nOn a combined basis, InterRent Multi Residential REIT would own\napproximately 1,800 apartment units in Ontario, with an estimated market value\nof over $100 million, and annual gross rental revenues in excess of\n$13.5 million.\nThe property management operations of Adelaide Development Corp.,\nInterRent's property management company and MPM Canada Residential Property\nManagement Inc., Silverstone's property management company would be\nconsolid...