TSX.V-IIP
Frankfurt: I4N.F
TORONTO, Feb. 7 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has closed its
acquisition of a 111 suite apartment complex in Belleville, Ontario for
$4,995,000 ($45,000/suite), and the sale of a 5 suite building in the GTA's
Parkdale district for $600,000 ($120,000/suite).
Commenting on the acquisition and divestiture, Michael Newman, President
and CEO of the Company stated, "The acquisition of the 111 suite Belleville
complex, will result in management efficiencies and cost savings for
InterRent, with current ownership of 425 units between Trenton and Prescott,
Ontario, a two hour drive along Highway No. 401. The cost of acquisition at
$45,000 a suite, is substantially below replacement cost, and CMHC insured,
10 year mortgage financing at approximately 4.5% will ensure that the purchase
will be immediately accretive. As our largest acquisition to date, it will
increase our portfolio's book value by approximately 9.5% from the end of our
last quarter to $57.0 million and annual gross rental revenues by $850,000.
The sale of the 5 unit building in the GTA's Parkdale district is in keeping
with our strategy of profitably selling our smaller non-strategic assets in
the GTA's low capitalization rate environment and redeploying the proceeds in
higher capitalization rate, lower per suite pricing locations. The $173,000
net gain from the sale (38% on the purchase price, and 153% on invested
capital) will provide us with additional capital as InterRent's management
continues to seek out similar acquisition and divestiture 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
