TSX.V-IIP
Frankfurt: I4N.F
TORONTO, May 9 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has signed a Letter of
Intent with arms length parties for the acquisition of two apartment buildings
containing sixty (60) one and two bedroom suites in Prescott, Ontario, for
$2.7 million, or $45,000/suite. The acquisition, when completed will result in
InterRent owning a total of 108 suites in Prescott and 632 in Eastern Ontario.
The closing of the transaction, scheduled for the 7th of July, 2006, is
subject to, among other usual conditions, the execution of a definitive
Agreement of Purchase and Sale and the completion of due diligence by
InterRent. With the addition of the new Prescott properties and the closing of
the sixty three (63) suite Hamilton acquisition, scheduled for May 31, 2006,
the book value for InterRent's multi residential property portfolio will now
exceed $63 million, with market values substantially above that.
Commenting on the Letter of Intent, Michael Newman, President and CEO of
InterRent stated, "This acquisition, well below replacement cost, is in line
with our strategy of acquiring undervalued, underperforming properties in
secondary markets and applying our professional property and asset management
skills and experience to achieve improved financial performance. It also more
than doubles our presence in Prescott, which conforms to our strategy of
clustering our buildings, thereby obtaining operating synergies and lowering
operating costs. The purchase price on a stabilized basis reflects a
capitalization rate of approximately 9.5%."
In addition, Interrent confirmed that it continues to work towards a
previously announced potential business combination with Silverstone Equities
and possible REIT conversion and is targeting the fourth fiscal quarter to
complete such transactions. The proposed transactions are subject to a number
of conditions and contingencies and there is no assurance that they will be
completed when scheduled or at all.
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
