TSX.V-IIP
Frankfurt: I4N.F
TORONTO, March 8 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has signed a binding
Letter of Intent with Silverstone Equities Inc., ("Silverstone") whereby
Silverstone's general partner and limited partners would exchange their
partnership units for securities of InterRent. The basis of exchange has not
yet been determined and would be based upon a valuation by an independent
valuator of all of the assets, liabilities and operations of both entities.
Simultaneously with the completion of the business combination, InterRent
expects to convert to a real estate investment trust structure under the
proposed name of "InterRent Multi Residential Real Estate Investment Trust".
The business combination is subject to a number of conditions, including the
completion of definitive documentation, the receipt of a valuation of
InterRent and Silverstone that is satisfactory to both parties, completion of
due diligence investigations by both parties, and the receipt of all required
regulatory, Exchange and security holder approvals. The transaction is
expected to be completed on or before August 31, 2006.
Silverstone Equities Inc.(or its nominee companies) is the general
partner of three limited partnerships, Park Place Equities 2000, Redwood
Terrace Cambridge Co-Tenancy and 90-102 Silvercreek Parkway Inc. The
partnerships are the owners of an aggregate of 577 apartment units located in
Mississauga, Guelph, Cambridge and Stratford, Ontario.
InterRent International Properties Inc. through two wholly owned
subsidiaries, InterRent Properties Inc. and InterRent Realty Corp. owns an
aggregate 1,146 apartment units in Toronto, Ottawa, Hamilton, London, Niagara
Falls, Trenton, Belleville, Kingston, and Prescott, Ontario, with an
additional 63 units in Hamilton under contract.
On a combined basis, InterRent Multi Residential REIT would own
approximately 1,800 apartment units in Ontario, with an estimated market value
of over $100 million, and annual gross rental revenues in excess of
$13.5 million.
The property management operations of Adelaide Development Corp.,
InterRent's property management company and MPM Canada Residential Property
Management Inc., Silverstone's property management company would be
consolidated and merged into InterRent Multi Residential REIT on the same
basis as the InterRent/Silverstone combination.
Key executives of both companies will continue to be employed by the REIT
in positions equivalent to their positions with the predecessor companies.
Upon conversion to a REIT structure, a Board of Trustees will be elected by
all the shareholders of InterRent and limited partners of Silverstone.
Commenting on the Letter of Intent and potential REIT conversion, Michael
Newman, President and CEO of InterRent stated, "We are very excited about the
proposed union of InterRent and Silverstone, and the potential conversion to a
REIT. Management of both companies believes that the combined entity will have
the critical mass to grow our portfolios significantly. To this end, we are
currently in the process of examining various potential portfolio acquisitions
which if completed could materially increase the total number of apartment
suites under our ownership."
James McClintock, B.A., LL.B, President of Silverstone added, "We are
equally excited about the union, and its potential for growth, with our
combined expertise, being greater than the sum of the individual groups. The
conversion to a real estate investment trust will give our limited partners
liquidity and risk diversification due to the broad holdings of the two
groups. The lower cost of capital will also allow the new real estate
investment trust entity to be more competitive in today's market. Both
InterRent and Silverstone have built a solid reputation in the industry and
together have the potential to be a significant player in the multi-
residential market in Canada."
InterRent is a rapidly expanding, growth oriented real estate company
engaged in building shareholder value through the acquisition, ownership and
operation of strategically located income producing multi-residential real
estate, with 1,146 apartment suites under ownership and an additional
63 suites under contract.
Silverstone Equities is the General Partner of three Limited partnerships
owning 577 apartment units in Ontario.
Certain information in this press release may contain forward-looking
statements. This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to predict. Actual
results might differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in the forward looking-statements unless and until required by
securities laws applicable to the Company. Additional information identifying
risks and uncertainties is contained in the Company's filings with the
Canadian securities regulators, which filings are available at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00010579E
