Business
InterRent International Properties Inc. Announces Closing Of Largest Acquisition To Date, And Sale Of GTA Property
InterRent International Properties Inc. Announces Closing Of Largest Acquisition To Date, And Sale Of GTA Property.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX.V-IIP\nFrankfurt: I4N.F\n\nTORONTO, Feb. 7 /CNW/ - InterRent International Properties Inc.,\n(\"InterRent\" or the \"Company\") today announced that it has closed its\nacquisition of a 111 suite apartment complex in Belleville, Ontario for\n$4,995,000 ($45,000/suite), and the sale of a 5 suite building in the GTA's\nParkdale district for $600,000 ($120,000/suite).\nCommenting on the acquisition and divestiture, Michael Newman, President\nand CEO of the Company stated, \"The acquisition of the 111 suite Belleville\ncomplex, will result in management efficiencies and cost savings for\nInterRent, with current ownership of 425 units between Trenton and Prescott,\nOntario, a two hour drive along Highway No. 401. The cost of acquisition at\n$45,000 a suite, is substantially below replacement cost, and CMHC insured,\n10 year mortgage financing at approximately 4.5% will ensure that the purchase\nwill be immediately accretive. As our largest acquisition to date, it will\nincrease our portfolio's book value by approximately 9.5% from the end of our\nlast quarter to $57.0 million and annual gross rental revenues by $850,000.\nThe sale of the 5 unit building in the GTA's Parkdale district is in keeping\nwith our strategy of profitably selling our smaller non-strategic assets in\nthe GTA's low capitalization rate environment and redeploying the proceeds in\nhigher capitalization rate, lower per suite pricing locations. The $173,000\nnet gain from the sale (38% on the purchase price, and 153% on invested\ncapital) will provide us with additional capital as InterRent's management\ncontinues to seek out similar acquisition and divestiture opportunities with a\nview to increasing portfolio and shareholder values.\"\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 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 ...