TSX - Venture - IIP
TORONTO, April 21 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company"), today announced that it has entered into a
conditional agreement of purchase with an arms length party to acquire a
40 unit apartment building, in Kingston, Ontario for a price of $1.7 million,
or $42,500, per unit. The addition of these apartments will represent an
increase of 30% in InterRent's current Kingston portfolio of 130 units, to
170, and the total number of units in Ontario, under ownership and management
to 827. The acquisition is scheduled to close on July 27, 2005, and is subject
to completion of due diligence by InterRent.
The $1.7 million purchase price will be satisfied by $425,000 in cash
from the Company's treasury and the balance by a new ten year, CMHC insured
first mortgage at 4.73% per annum. Rental revenue from the property will
contribute approximately $330,000 to InterRent's gross annual rental revenues.
The Company also announced that to date, it has successfully completed
the purchase of 80 of its recently announced purchase of a total of 224 units
in London, Ottawa, Hamilton and the GTA.
Michael Newman, President & CEO of InterRent, commenting on the pending
acquisitions stated, "With this acquisition, our Kingston portfolio will total
170 units within a radius of half a mile. We believe that true synergies can
only be captured and maximum income gains achieved through InterRent's
strategy of clustering its multi-residential properties, within certain
neighborhoods in mid-size Ontario communities. We are now building critical
mass in several Ontario communities that are exhibiting below average vacancy
rates and a higher than average demand for decent rental accommodations."
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 (GTA), and other major Ontario
population centers.
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
