/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Dec. 21 /CNW/ - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") is pleased to announce that it has filed a preliminary prospectus with securities commissions and other similar regulatory authorities in each of the provinces of Canada in connection with the previously announced offering (the "Offering"), on a bought deal basis, of $25 million of convertible unsecured subordinated debentures (the "Debentures"). The Debentures have a coupon rate of 7.0% per annum and will be convertible at the holder's option into units of InterRent (the "Units") prior to maturity at a conversion price of $4.60 per Unit all upon the terms set out in the preliminary prospectus. InterRent intends to use the net proceeds of the Offering to reduce indebtedness. Closing of the Offering is expected to occur on January 11, 2008 and is subject to the approval of the Toronto Stock Exchange (the "TSX").
The Debentures are being offered through a syndicate of underwriters led by Scotia Capital Inc., and including National Bank Financial Inc., Blackmont Capital Inc., Dundee Securities Corporation and Desjardins Securities Inc.
InterRent also intends to issue, pursuant to a non-brokered private placement (the "Private Placement"), approximately 965,909 Units at a price of $4.40 per Unit for total gross proceeds of $4,250,000, to an existing institutional investor. Although the Private Placement is expected to close concurrently with the closing of the Offering, the closing of the Private Placement is not dependent on the closing of the Offering. The proceeds from the Private Placement will be used to fund future acquisitions. The Units issued under the Private Placement will be subject to a four month hold period under Canadian securities legislation. The completion of the Private Placement is subject to the review and approval of the TSX.
About InterRent
InterRent is a rapidly expanding, growth oriented real estate investment trust engaged in building unitholder value through the accretive acquisition, ownership and operation of strategically located income producing multi-residential real estate, with 4,007 apartment suites under ownership and 162 under conditional purchase contract, for a total of 4,169 suites in the province of Ontario.
Distribution In Canada Only
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this release. A full description of these risk factors can be found in InterRent's annual information form dated December 10, 2007 as well as its other publicly filed information which may be located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.