OTTAWA, ONTARIO--(Marketwired - Sept. 5, 2017) -
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 two neighbouring high-rise apartments located at 2121 and 2255 rue Saint Mathieu in Montreal, Quebec.
The buildings are situated in the heart of downtown Montreal, in the historic borough of Ville-Marie and the vibrant neighbourhood of Shaughnessy Village. The properties are within 200 metres of the Guy-Concordia Metro Station, giving easy and reliable access to Canada's busiest metro system. The highly-educated population of Shaughnessy Village can be attributed to the immediacy of two well-regarded post-secondary institutions in Concordia and McGill University. The surrounding area features an abundance of nearby amenities including shopping, restaurants, parks, entertainment, colleges, and highly accessible public transit. Additionally, the proximity to Montreal's business core attracts business professionals to this highly desirable area.
2121 rue Saint Mathieu is a 23 storey building, while 2255 rue Saint Mathieu consists of 13 stories, and together they combine for a total of 249 suites and offer a wide variety of resident focused amenities, including roof-top terraces, indoor penthouse-level pool, sauna, and on-site laundry facilities. The buildings have spectacular views of Mont-Royal, offering breath-taking vistas from the rooftop patios and suites.
The properties are being purchased for $53,753,725 or $215,878 per suite. The purchase is scheduled to be completed in mid-September.
Additionally, InterRent announced today that it has completed an agreement to acquire a 74 suite mid-rise apartment located at 3 East 37th Street, in Hamilton, Ontario.
The building is situated in the Mountain Area of Hamilton, on the edge of the Niagara Escarpment, overlooking the City of Hamilton and Lake Ontario. This 1.2 acre property is located in the neighbourhood of Raleigh, a desirable residential rental area, and is a short 10 minute drive from downtown Hamilton. The building is located a block away from Concession Street, which features numerous nearby amenities including shopping, restaurants, public transportation, and entertainment. Additionally, the property is within 800 metres of the Juravinski Hospital and Cancer Center and directly adjacent to Mountain Drive Park.
The property was purchased for $11,250,000 or $152,027 per suite. The purchase was completed on August 28th, 2017, and was financed with the assumption of an existing CMHC mortgage totaling $3,250,000.
The addition of 3 East 37th Street complements InterRent's existing property located at 775 Concession Street (comprised of 108 suites), which is only 400 metres away, allowing for operational synergies and efficiencies.
Hamilton has seen a sharp increase in rental market fundamentals over the past 2 years and has been positively influenced by the expansion of the GO Train, connecting Hamilton to Toronto and other neighbouring cities. This market growth has reflected positively on InterRent's Hamilton portfolio and this acquisition is representative of the REIT's continued focus in the Hamilton market. Over the past two years, InterRent has now acquired 1,026 suites in Hamilton.
"We are extremely pleased to announce these two acquisitions. In Montreal, one of the REIT's core growth markets, this property is amongst the best locations, right in the heart of downtown. These buildings are well situated within a highly desirable demographic node that will increase our visibility and branding opportunities within the Montreal market. Additionally, InterRent has made another acquisition in the Hamilton area, a market that has shown consistent success for the REIT. We look forward to capitalizing on the operational efficiencies created due to its proximity to our existing property on Concession Street and the continued growth in the market in order realize the full value of this property for our Unitholders," said Mike McGahan, CEO.
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.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Chief Executive Officer
(613) 569-5699 Ext 244
Brad Cutsey, CFA
(613) 569-5699 Ext 226
Curt Millar, CPA, CA
Chief Financial Officer
(613) 569-5699 Ext 233