Business
InterRent International Properties Inc. Announces Sale Of GTA Multiresidential Property
InterRent International Properties Inc. Announces Sale Of GTA Multiresidential Property.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX.V-IIP\n\nTORONTO, Dec. 5 /CNW/ - InterRent International Properties\nInc.,(\"InterRent\" or the \"Company\") today announced that it has sold a five\n(5) unit apartment building in Toronto's Parkdale district to an arm's length\nparty for a net price of six hundred thousand dollars ($600,000) or a per unit\nprice of $120,000. The sale is scheduled to close on January 31, 2006.\nThe property was acquired by InterRent in 1999 for a total price of\n$472,000. The annual rate of return on equity over the period of InterRent's\nownership was 21.7% not including income generated from rents during this\ntime. InterRent will receive net proceeds of approximately $370,000 after\ncosts, and the payout of an existing first mortgage. The gain from the sale\nwill be included in revenues for InterRent's second 2006 fiscal quarter.\nCommenting on the sale, Michael Newman, President and CEO of the Company\nstated, \"This sale is in keeping with our stated objective of profitably\ndivesting of our smaller, non-strategic assets within the Greater Toronto Area\n(GTA) and redeploying the proceeds of sale in other population centers of\nOntario where InterRent currently operates. Management believes that taking\nadvantage of the current high prices for income producing properties, and low\ncapitalization rates prevalent within the GTA, and acquiring properties at\nlower prices and significantly higher capitalization rates outside of Toronto\nwill result in greater long term value for the Company's shareholders.\"\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 why actual results could differ from\nthose reflected in the forward looking-statements unless and until required by\nsecurities laws a...