InterRent Real Estate Investment Trust Announces $20 Million Acquisition in Burlington, Ontario
January 25, 2012 at 03:14 pm
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InterRent Real Estate Investment Trust announced that it has entered into an unconditional agreement to acquire a property consisting of 2 high-rise apartment buildings, totaling 230 suites, situated in Burlington, Ontario. The complex is located at 2386 & 2400 New Street, and each building contains 115 suites with a total of 39 1-bedroom, 183 2-bedroom and 8 3-bedroom suites and 253 parking spaces. Ample unused storage space exists in both buildings for possible future apartment suite and amenity room build outs. The property is ideally located between Highway 403 to the North and Lake Ontario to the South and is walking distance to Central Park and many other amenities. The acquisition is expected to be completed on or about March 7, 2012 at a purchase price of $19,910,000 or $85,565 per suite. The property is being purchased with a going in capitalization rate of 6.6% and is immediately accretive to the REIT. The acquisition will be financed at 75% of purchase price through a combination of an existing first and new second mortgage with a blended rate of approximately 3%. As part of the repositioning of the portfolio that began in late 2009, the company has invested heavily in its existing portfolio, has disposed of assets that are non-core to its growth objectives and is focused on growth in a structured and prudent manner. This addition to the company's 4310 suites currently under ownership represents a 5% suite increase to the company's portfolio in an accretive manner. The company is actively seeking synergistic and accretive acquisitions through a strong broker network and self directed private sources.
InterRent Real Estate Investment Trust is a real estate investment trust. It is engaged in acquisition, ownership, management and repositioning of strategically located, income-producing, multi-residential properties. Its primary objectives are to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; to provide Unitholders with sustainable and growing cash distributions, payable monthly, and to maintain a conservative payout ratio and balance sheet. The Company's portfolio of properties is located across various locations, such as Ajax, Brossard, Gatineau, Hamilton, Mississauga, Montreal, Oakville, Ottawa, St. Catharines, Stratford, Toronto, Trenton, and Vancouver. Its properties include 10 - 14 REID DRIVE, 100 MAIN STREET, 1015 ORCHARD, 1170 FENNELL AVENUE, 1276 DORCHESTER AVENUE, and 15 DON STREET. It also owns a 605-suite apartment community at 2 & 4 Hanover Road in Brampton, Ontario.