TSX.V-IIP
Frankfurt: I4N.F
TORONTO, Feb. 21 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has entered into a
conditional purchase agreement with arms length parties, to acquire a 63 suite
apartment building, containing 30 two bedroom, 32 one bedroom and 1 bachelor
unit, in the prestigious Hess Village area of Hamilton, Ontario, for
$3.225 million ($51,190/suite). The agreement is conditional on completion of
due diligence by InterRent and is scheduled to close on May 15, 2006. At the
same time the Company also announced that it has entered into discussions for
the sale of three of its buildings containing 18 units in Toronto's Parkdale
district, to parties that previously purchased a 10 unit building in Parkdale
from InterRent in September, 2005. The sale of the three properties at a price
of $1.88 million ($110,000/unit) is scheduled to close on May 31, 2006, and is
subject to several conditions, including due diligence and financing.
Commenting on the acquisition and potential divestiture, Michael Newman,
President and CEO of the Company stated, "The purchase of the Hess Village
property will boost our ownership interests in the Hamilton/Niagara region to
288 suites. This latest acquisition is in close proximity to our other
Hess Village property and should provide the Company with increased management
efficiencies and cost savings. The potential sale of the three 6 unit
buildings in the GTA's Parkdale district is in keeping with our strategy of
profitably selling our smaller non-core assets in the GTA's low capitalization
rate environment and redeploying the proceeds in higher capitalization rate,
lower per suite pricing locations. The proceeds and profits from the sale of
these 18 units will be utilized by management to finance future accretive
acquisition opportunities with a view to increasing portfolio and shareholder
values"
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.
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
