TSX-Venture-IIP
TORONTO, Sept. 6 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has entered into a
binding agreement of purchase and sale with an arm's length party for the sale
of a ten (10) unit apartment building in Toronto's Parkdale district. The
transaction for which InterRent has received a $215,000 non-returnable
deposit, is scheduled to close on September 16, 2005.
The building was acquired by InterRent in the fall of 1999 for $667,000
including all costs. The sale was transacted privately for a total
consideration of $850,000, or $85,000 per unit. As part of the purchase and
sale agreement, InterRent will take back a $17,000 second mortgage for three
years at an annual interest rate of six percent (6%), with the balance in
cash. After the discharge of an existing first mortgage of $348,000 including
all costs, and a second mortgage of $70,000, InterRent will receive a total of
$415,000 in cash. The net gain of $229,000 (34.3%) on the sale of the property
will be booked in the first quarter of 2006. Based on the selling price of the
building, InterRent realized an annual return of 17.8% on its original
investment, not including operating profits generated during its ownership.
Commenting on the divestiture, Michael Newman, President and CEO of the
Company stated, "The sale of this property is in keeping with our previously
stated strategy of disposing of smaller, non-strategic, non-core assets within
the Greater Toronto Area (GTA) at high per-unit valuations and low
capitalization rates, and re-deploying the funds obtained into larger, higher
capitalization rate buildings at lower per-unit prices, in smaller population
centers such as Hamilton, Kingston and Niagara Falls, Ontario. Management will
continue to take advantage of opportunities to profitably divest of the
Company's smaller GTA properties as buyers are identified, with the exception
of our strategically important King Street West buildings, which hold future
re-development potential."
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 1,040 apartment suites under ownership or binding agreements of
purchase.
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
