TSX.V-IIP
TORONTO, Dec. 5 /CNW/ - InterRent International Properties
Inc.,("InterRent" or the "Company") today announced that it has sold a five
(5) unit apartment building in Toronto's Parkdale district to an arm's length
party for a net price of six hundred thousand dollars ($600,000) or a per unit
price of $120,000. The sale is scheduled to close on January 31, 2006.
The property was acquired by InterRent in 1999 for a total price of
$472,000. The annual rate of return on equity over the period of InterRent's
ownership was 21.7% not including income generated from rents during this
time. InterRent will receive net proceeds of approximately $370,000 after
costs, and the payout of an existing first mortgage. The gain from the sale
will be included in revenues for InterRent's second 2006 fiscal quarter.
Commenting on the sale, Michael Newman, President and CEO of the Company
stated, "This sale is in keeping with our stated objective of profitably
divesting of our smaller, non-strategic assets within the Greater Toronto Area
(GTA) and redeploying the proceeds of sale in other population centers of
Ontario where InterRent currently operates. Management believes that taking
advantage of the current high prices for income producing properties, and low
capitalization rates prevalent within the GTA, and acquiring properties at
lower prices and significantly higher capitalization rates outside of Toronto
will result in greater long term value for the Company's shareholders."
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
