Business
InterRent International Properties Inc., Announces Closing of Acquisition of 221 Apartment Suites in Ontario for $11.125 Million
InterRent International Properties Inc., Announces Closing of Acquisition of 221 Apartment Suites in Ontario for $11.125 Million.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX -Venture-IIP\n\nTORONTO, Oct. 12 /CNW/ - InterRent International Properties Inc.,\n(\"InterRent\" or the \"Company\") today announced that it has closed on its\npreviously announced acquisition of three apartment buildings containing 221\nsuites in Hamilton, Niagara Falls and Prescott, Ontario. These latest\nacquisitions bring to 1,040 the total number of suites owned in Ontario by\nInterRent, as compared to 372 at the same time last year.\nThe buildings were acquired by InterRent for total consideration of\n$11,125,000 or $50,339 per suite. The cash portion of the purchase price,\n$3,207,000 (29% Loan To Value) was drawn from InterRent's recent offering of\n$5.5 million of 7.25% subordinated convertible debentures, and the balance\nfrom the assumption of existing, CMHC insured and conventional first, and\nVendor Take Back second mortgages, with three year average maturities at a\nmedian interest rate of 4.95%.\nCommenting on the acquisitions, Michael Newman, President and CEO of the\nCompany stated, \"These latest acquisitions confirm management's ability to\ndeploy capital quickly and accretively. The properties were purchased at an\naverage capitalization rate of 8.65% with median mortgage rates of 4.95%,\nproviding a positive investing spread of 370 basis points. After the closing\nof these acquisitions the company has $1.25 million of cash and $2.5 million\nof unused lines of credit to be utilized for future acquisitions. Management\nin concert with the Corporation's financial advisors continues to explore\nadditional accretive additions to our existing portfolio, as well as\nshareholder value enhancing initiatives.\"\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 1,040 apartment suites under ownership.\n\nCertain information in this press release may contain forward-looking\nstatements. This information is based on current expectations that are subject\nto significant risks and uncertainties that are difficult to predict. Actual\nresults might differ materially from results suggested in any forward-looking\nstatements. The Company assumes no obligation to update the forward-looking\nstatements, or to update the reasons...