OTTAWA, ONTARIO--(Marketwired - Jan. 28, 2015) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today that it has entered into an unconditional agreement to acquire a multi-family portfolio in Ottawa that will add 286 suites to the REIT (the "Acquisition").
The Acquisition consists of two large parcels which include a scenic 2.9 acre waterfront complex on Rowatt Street, Jamieson Street and Bradford Street; and, a 5.1 acre park-side complex on Zephyr Avenue and Marie Street. The portfolio is ideally located in the West end of Ottawa within the residential neighbourhood of Britannia and bordered by the Ottawa River, Britannia Park, Carling Avenue and Richmond Road. Both complexes are adjacent to Britannia Park and the Ron Kolbus Lakeside Gardens, home to one of Ottawa's largest beaches and is a popular recreational destination due to its tennis club, network of hiking and biking trails, expansive grounds, sailing, and beautiful views of the Ottawa River and Gatineau Hills. It is also within close proximity to bus routes and numerous amenities including Lincoln Fields Shopping Centre, Bayshore Shopping Centre, the Queensway-Carleton Hospital, and less than 5 kms away from the upcoming National Defense offices at Moodie Drive and Carling Avenue.
The Acquisition is expected to be completed in late April at a purchase price of $27,750,000, or $97,028 per door. The property is being purchased with a going in capitalization rate of 5.6% which is immediately accretive to the REIT, and will be financed through a new conventional first mortgage.
The portfolio addresses include 334, 338 348, 368, 372 Zephyr Avenue; 2740, 2750 Marie Street; 2777, 2779, 2789 Jamieson Street; 2768, 2776, 2778, 2780 Rowatt Street; and, 112, 116, 120, 124, 126, 130, 132, 134, 136, 138 Bradford Street. The buildings consist of: 8 low-rises (238 suites), 27 townhomes, 20 duplexes, and, 1 home. The suite breakdown is as follows: 22 bachelor; 42 1-bedroom; 191 2-bedroom; and, 31 3-bedroom suites.
"We are very pleased to announce the acquisition of this portfolio. It is truly a rare opportunity in Ottawa to find waterfront multi-family rental accommodations with such spectacular views. These properties are situated in a strong, west end rental area which complements InterRent's current Crystal Beach holdings. We feel that the upside potential in this portfolio makes it an excellent fit for the REIT's repositioning and value creation strategy." said Mike McGahan, CEO.
Bought Deal Financing
InterRent is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Dundee Securities Ltd., GMP Securities L.P., and BMO Capital Markets, and including Scotiabank, Canaccord Genuity Corp., TD Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., Raymond James Ltd., Desjardins Securities Inc. and Euro Pacific Canada, Inc. (together the "Underwriters"), to purchase 11,719,000 trust units of InterRent (the "Trust Units") at a price of $6.40 per Trust Unit for gross proceeds of $75,001,600 on a bought deal basis (the "Offering").
InterRent has also granted the Underwriters an over-allotment option to increase the size of the Offering by up to an additional 15%, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering.
The net proceeds from the Offering will be used in part to assist in financing the Trust's previously announced (December 1, 2014 and January 28, 2015) acquisitions in Ottawa, Ontario (the "Acquisitions") and for working capital and general corporate purposes.
Closing of the Offering is anticipated to occur on or about February 19, 2015 (the "Closing Date") and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.
The Trust Units will be offered in all provinces of Canada by way of a short form prospectus.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About InterRent
InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.
InterRent's strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions.
InterRent's primary objective is to use the proven industry experience of the Trustees, Management and Operational Team to: (i) provide Unitholders with stable and growing cash distributions from investments in a diversified portfolio of multi-residential properties; (ii) enhance the value of the assets and maximize long-term Unit value through the active management of such assets; and (iii) expand the asset base and increase Distributable Income through accretive acquisitions.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning applicable to 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 most recently publicly filed information 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.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.