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InterRent Announces Signing of Letter of Intent To Acquire Sixty Suites In Prescott, Ontario For $2.7 Million
InterRent Announces Signing of Letter of Intent To Acquire Sixty Suites In Prescott, Ontario For $2.7 Million.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX.V-IIP\nFrankfurt: I4N.F\n\nTORONTO, May 9 /CNW/ - InterRent International Properties Inc.,\n(\"InterRent\" or the \"Company\") today announced that it has signed a Letter of\nIntent with arms length parties for the acquisition of two apartment buildings\ncontaining sixty (60) one and two bedroom suites in Prescott, Ontario, for\n$2.7 million, or $45,000/suite. The acquisition, when completed will result in\nInterRent owning a total of 108 suites in Prescott and 632 in Eastern Ontario.\nThe closing of the transaction, scheduled for the 7th of July, 2006, is\nsubject to, among other usual conditions, the execution of a definitive\nAgreement of Purchase and Sale and the completion of due diligence by\nInterRent. With the addition of the new Prescott properties and the closing of\nthe sixty three (63) suite Hamilton acquisition, scheduled for May 31, 2006,\nthe book value for InterRent's multi residential property portfolio will now\nexceed $63 million, with market values substantially above that.\nCommenting on the Letter of Intent, Michael Newman, President and CEO of\nInterRent stated, \"This acquisition, well below replacement cost, is in line\nwith our strategy of acquiring undervalued, underperforming properties in\nsecondary markets and applying our professional property and asset management\nskills and experience to achieve improved financial performance. It also more\nthan doubles our presence in Prescott, which conforms to our strategy of\nclustering our buildings, thereby obtaining operating synergies and lowering\noperating costs. The purchase price on a stabilized basis reflects a\ncapitalization rate of approximately 9.5%.\"\nIn addition, Interrent confirmed that it continues to work towards a\npreviously announced potential business combination with Silverstone Equities\nand possible REIT conversion and is targeting the fourth fiscal quarter to\ncomplete such transactions. The proposed transactions are subject to a number\nof conditions and contingencies and there is no assurance that they will be\ncompleted when scheduled or at all.\n\nInterRent is a rapidly expanding, growth oriented real estate company\nengaged in building shareholder value through the acquisition, ownership and\noperation of strategically located income producing multi-residential real\nestate, with 1,146 apartment suites under owner...