19:13:54 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



InterRent Real Estate Investment Trust
Symbol IIP
Shares Issued 57,912,964
Close 2015-01-27 C$ 6.53
Market Cap C$ 378,171,655
Recent Sedar Documents

InterRent to acquire two Ottawa complexes for $27.75MM

2015-01-28 16:38 ET - News Release

Mr. Mike McGahan reports

INTERRENT ANNOUNCES $27.75 MILLION ACQUISITION IN OTTAWA, ONTARIO AND $75 MILLION BOUGHT DEAL

InterRent Real Estate Investment Trust has entered into an unconditional agreement to acquire a multifamily portfolio in Ottawa that will add 286 suites to the REIT.

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 five kilometres away from the upcoming national defence offices at Moodie Drive and Carling Avenue.

The acquisition is expected to be completed in late April at a purchase price of $27.75-million, or $97,028 per door. The property is being purchased with a going-in capitalization rate of 5.6 per cent, 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 and 372 Zephyr Ave.; 2740 and 2750 Marie St.; 2777, 2779 and 2789 Jamieson St.; 2768, 2776, 2778 and 2780 Rowatt St.; and, 112, 116, 120, 124, 126, 130, 132, 134, 136 and 138 Bradford St. The buildings consist of: eight low-rises (238 suites), 27 townhomes, 20 duplexes and one home. The suite breakdown is as follows: 22 bachelor suites, 42 one-bedroom suites, 191 two-bedroom suites and 31 three-bedroom suites.

"We are very pleased to announce the acquisition of this portfolio. It is truly a rare opportunity in Ottawa to find waterfront multifamily 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, chief executive officer.

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 LP 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., to purchase 11,719,000 trust units of InterRent at a price of $6.40 per trust unit for gross proceeds of $75,001,600 on a bought-deal basis.

InterRent has also granted the underwriters an overallotment option to increase the size of the offering by up to an additional 15 per cent, 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 (Dec. 1, 2014, and Jan. 28, 2015) acquisitions in Ottawa, Ont., and for working capital and general corporate purposes.

Closing of the offering is anticipated to occur on or about Feb. 19, 2015, 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.

We seek Safe Harbor.

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