TSX.V-IIP
TORONTO, Nov. 2 /CNW/ - InterRent International Properties Inc.,
("InterRent" or the "Company") today announced that it has secured a
$1.2 million line of credit from the Royal Bank of Canada (RBC). The new line
of credit, carrying interest at RBC's prime lending rate, currently at 4.75%,
is to be utilized for acquisitions and general working capital purposes. It is
50% secured by collateral second mortgages on five of the Company's
multi-residential properties in Kingston and Toronto, Ontario, and the balance
by a General Security Agreement over InterRent's non real estate related
assets. The credit agreement contains standard covenants, warranties and
indemnifications. The new line of credit replaces a $375,000 line of credit
with interest at 2% over the prime lending rate that the Company has
maintained with another Canadian chartered bank.
Commenting on the new line of credit, Michael Newman, President and CEO
of the Company stated, "We are pleased to have established a working
relationship with the Royal Bank of Canada, Canada's largest chartered bank.
This new line of credit will not only reduce our borrowing costs as it is 2%
below what we are paying now, but together with our existing $1.126 million
credit line with DUCA Financial Corporation will provide us with the financial
flexibility to move quickly to take advantage of potential accretive
acquisition opportunities."
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
