TSX -Venture-IIP
TORONTO, Oct. 12 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has closed on its
previously announced acquisition of three apartment buildings containing 221
suites in Hamilton, Niagara Falls and Prescott, Ontario. These latest
acquisitions bring to 1,040 the total number of suites owned in Ontario by
InterRent, as compared to 372 at the same time last year.
The buildings were acquired by InterRent for total consideration of
$11,125,000 or $50,339 per suite. The cash portion of the purchase price,
$3,207,000 (29% Loan To Value) was drawn from InterRent's recent offering of
$5.5 million of 7.25% subordinated convertible debentures, and the balance
from the assumption of existing, CMHC insured and conventional first, and
Vendor Take Back second mortgages, with three year average maturities at a
median interest rate of 4.95%.
Commenting on the acquisitions, Michael Newman, President and CEO of the
Company stated, "These latest acquisitions confirm management's ability to
deploy capital quickly and accretively. The properties were purchased at an
average capitalization rate of 8.65% with median mortgage rates of 4.95%,
providing a positive investing spread of 370 basis points. After the closing
of these acquisitions the company has $1.25 million of cash and $2.5 million
of unused lines of credit to be utilized for future acquisitions. Management
in concert with the Corporation's financial advisors continues to explore
additional accretive additions to our existing portfolio, as well as
shareholder value enhancing initiatives."
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.
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
