TSX.V - IIP
TORONTO, Nov. 7 /CNW/ - InterRent International Properties Inc. (or
"InterRent" or "the Company") today announced that it has entered into a
conditional Agreement of Purchase with arms length parties for the acquisition
of three apartment buildings containing 111 suites, located in Belleville,
Ontario. The $4,995,000 purchase price ($45,000/unit) is to be satisfied by a
CMHC insured first mortgage for 75% of the value of the acquisition from one
of the Company's mortgage lenders at current mortgage rates, fixed for a
period of ten years, $125,000 by the issuance of common shares of the Company
at a price equal to the average closing price of InterRent common shares on
the TSX Venture Exchange for the twenty trading days prior to the closing of
the acquisition, and the balance in cash from InterRent's recently completed
$5.54 million convertible debenture financing. The issuance of the shares is
subject to the approval of the TSX Venture Exchange, and a four month
statutory hold period. The transaction is scheduled to close on February 6,
2006, and is conditional on completion of due diligence by the Company. Upon
closing, the acquisition will bring InterRent's total suite ownership in
Ontario to 1,151 suites.
Commenting on the latest acquisition, Michael Newman, president and CEO
stated; "InterRent's management continues to execute on its objective of
building a substantive portfolio of neighbourhood style apartment buildings
providing value based accommodations in Ontario's secondary population
centers. This latest purchase brings to 423 the number of suites under
InterRent's ownership in the contiguous Trenton, Belleville, Kingston and
Prescott segment of eastern Ontario's Highway 401 corridor. The proximity of
the 423 suites will provide us with certain synergies, reduced costs and
increased management efficiencies. With our portfolio approaching a book value
of $60 million, we have now established the critical mass necessary to
underpin our next stage of growth to the $100 million portfolio value level."
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 1,151 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
