TORONTO, Oct. 6 /CNW/ - InterRent International Properties Inc.
("InterRent") (TSX:V-IIP) today announced that its Board of Directors has
approved management's proposal to reorganize its business into a real estate
investment trust.
The Board has called a special meeting of its shareholders to be held on
November 24, 2006 to approve the proposed reorganization by way of plan of
arrangement under the Business Corporations Act (Ontario). The special meeting
will be held at 2:00 p.m. (EST) at the Albany Club, 91 King Street East,
Toronto. The record date for the determination of shareholders entitled to
receive notice of and vote upon matters considered at the special meeting will
be October 17, 2006. The notice of special meeting and the management
information circular describing the proposed reorganization will be mailed to
InterRent's shareholders on or about October 30, 2006. Following this date,
these materials will be made available for review at www.sedar.com.
Concurrently with the completion of the reorganization into a real estate
investment trust, InterRent expects to complete its previously announced
acquisition of the 479 suite Silverstone portfolio, resulting in a total of
1,709 suites in the combined entity immediately prior to the reorganization.
The details of the combined portfolio are contained in the information
circular to be mailed in connection with the special meeting.
The completion of the reorganization is subject to a number of conditions
which will be specified in the information circular, including the receipt of
shareholder approval, all applicable regulatory approvals, including the
approval of the TSX Venture Exchange and the receipt of an interim and final
order of the Ontario Superior Court of Justice in relation to the plan of
arrangement.
Michael Newman, President and CEO of InterRent, commenting on the
business combination with Silverstone, and concurrent reorganization into a
REIT stated; "This transaction when completed, will provide a substantial
platform of quality multi residential real estate with a market value of over
$100 million, from which to grow into a significant force within Canada's REIT
industry. We believe that the Corporation's conversion to a REIT structure
will provide InterRent's shareholders, and Silverstone's limited partners,
with tax effective value added, and the Company with an enhanced opportunity
to access lower cost capital to fuel its planned expansion, then would have
been available to it otherwise."
James Mclintock of the Silverstone group said, "The combination of
InterRent and Silverstone gives the resulting entity both an enhanced skill
set and a platform size to grow into a significant REIT in the Canadian
multi-residential sector. We are pleased to be participating in the conversion
to a REIT, which we believe will result in a lower cost of capital which will
facilitate the execution of the growth-oriented business plan of InterRent
REIT."
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 within the Greater Toronto Area, and other major population centres in
Ontario.
Forward Looking Statements
This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Generally, these
forward-looking statements can be identified by the use of forward-looking
terminology such as "plans", "anticipated", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
InterRent is subject to significant risks and uncertainties which may cause
the actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by
the forward looking statements contained in this release. A full description
of these risk factors can be found in InterRent's publicly filed information
which may be located at www.sedar.com. InterRent cannot assure investors that
actual results will be consistent with these forward looking statements and
InterRent assumes no obligation to update or revise the forward looking
statements contained in this release to reflect actual events or new
circumstances.
In particular, there is no assurance that the proposed reorganization
specified in this release or the proposed acquisition of the Silverstone
portfolio will be completed.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00010579E
