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OTTAWA, July 19, 2018 (GLOBE NEWSWIRE) -- InterRent Real Estate Investment Trust (TSX:IIP.UN) (“InterRent” or the “REIT”) announced today that it has entered into an agreement with a syndicate of underwriters co-led by Desjardins Capital Markets and Scotiabank (the “Underwriters”) to purchase 9,390,000 trust units (the “Units”) of the REIT on a bought deal basis at a price of $10.65 per Unit (the “Offering Price”) for gross proceeds of approximately $100 million (the “Offering”).

InterRent has also granted the Underwriters an over-allotment option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the Offering, to purchase up to an additional 1,408,500 Units at the Offering Price for additional gross proceeds of approximately $15 million, to cover over-allotments, if any.

The net proceeds from the Offering will be used to fund acquisitions, repay existing indebtedness and for working capital purposes. The REIT currently has approximately $86 million of properties under contract in its target markets. The REIT continues to have a robust acquisition pipeline of income producing properties, which are in various stages of negotiation.

The REIT has two income producing properties under contract totaling 215 suites for a combined purchase price of approximately $44 million. The properties are well-located within the downtown core of Montreal and were sourced on an off-market basis. The REIT intends to enhance the value of these properties through its active asset repositioning program.

In addition, the REIT has conditionally agreed to acquire a parcel of land representing 6.3 acres for a purchase price of $42 million. The site is located in the Greater Toronto Area, situated in close proximity to a major GO Transit Station. Management is in negotiations to acquire the adjacent parcels, which when completed, will provide the REIT with an interest in a strategic land assembly totaling 8.9 acres. The REIT is currently negotiating with, and intends to enter into a joint venture with partners to develop a large-scale, multi-use property with a significant residential rental component.

“These acquisitions are expected to enhance the REIT’s portfolio and the equity offering is expected to further strengthen InterRent’s balance sheet and position the REIT to continue to pursue new acquisition opportunities as well as move forward with some of the development opportunities that we have before us,” said Mike McGahan, CEO.

Pro forma the Offering and the intended use of proceeds, InterRent’s leverage will decline to approximately 42% of gross-book-value.

Closing of the Offering is anticipated to occur on or about August 9, 2018 and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.

The Units will be offered in all provinces and territories 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.

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