Business
InterRent International Properties Inc., Passes 1,000 Suite Ownership Milestone With New Property Acquisitions
InterRent International Properties Inc., Passes 1,000 Suite Ownership Milestone With New Property Acquisitions.
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\nTSX-Venture-IIP\n\nTORONTO, Aug. 5 /CNW/ - InterRent International Properties Inc.,\n(\"InterRent\" or the \"Company\") today announced that it has passed the critical\n1,000 suite ownership level by the acquisition of a 108 suite apartment\nbuilding in Hamilton, Ontario and an additional 65 suite building in Niagara\nFalls, Ontario.\nMichael Newman President & CEO of InterRent, commenting on the\nacquisitions stated. \"When we closed our $8.0 million equity financing in\nDecember of 2004 we made a commitment to our investors to deploy these funds\nexpeditiously and accretively. Over the past six months we have purchased\napproximately 700 suites at an average per suite cost below $50,000 and at an\naverage capitalization rate of 8.5%. With these new acquisitions InterRent has\nreached a critical milestone in its evolution to build a sizeable portfolio of\nmulti residential real estate in Ontario. We entered fiscal 2005 with\nownership of 372 units in our portfolio, with a book value of $17.0 million,\nand a revenue run rate of just over $2.4 million. We will now own 1,050\napartment suites with a net book value of approximately $54 million, and an\nestimated market value, based on third party appraisals and independent market\ninformation, in excess of $60 million. This equates to a net asset value of\napproximately $0.60 per share.\"\nWith the integration of projected revenues from the most recent\nacquisitions, InterRent will enter fiscal 2006 with a forecasted annual\nrevenue run rate of $8.3 million and a projected FFO (Funds From Operations)\nrun rate of $0.05 per share.\nIn its latest acquisitions, the Company entered into binding purchase and\nsale agreements with arms length vendors for the purchase of 173 suites in\nHamilton's Mountain District and in the Stamford Center area of Niagara Falls.\nThe 108 unit Hamilton property is located next to Henderson Hospital\nwhich is currently part of an ongoing $250 million expansion program. The\nHamilton building's purchase price of $4.9 million ($45,370 per suite) will be\npaid for by the assumption of a $3.7 million first mortgage, bearing interest\nat 4.86%, due in 2008, $25,000 in common shares of InterRent priced in the\ncontext of the market, and the balance in cash. The closing of the transaction\nis scheduled for September 19, 2005.\nThe 65 unit Niagara Fa...