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OTTAWA, ON / ACCESSWIRE / July 11, 2019 / InterRent Real Estate Investment Trust (TSX-IIP.UN) ("InterRent") announced today that it has entered into unconditional agreements to acquire three concrete high-rise apartments located at 235 Sherbrooke St West, 1025 Sherbrooke St East and 4875 Dufferin Ave in Montreal, Quebec. The Sherbrooke properties are situated in the heart of downtown Montreal and the Dufferin property is in the prestigious Hampstead neighborhood.
235 Sherbrooke St West, also known as Le Nouveau Colisee, features 293 residential units and approximately 7,000 square feet of prime retail space. With a Walkscore of 99, this property features excellent neighborhood amenities as well as a rooftop terrace, indoor pool, fitness room and sauna. The property is located 290 metres away from Place-des-Arts Metro.
1025 Sherbrooke Street East, also referred to as Tour Lafontaine, contains 251 residential suites and a commercial office that will be converted to additional amenity space. The current amenities include an indoor pool, gym facilities, and the potential to add further amenities on the rooftop. The property is located 450 metres away from Sherbrooke Metro and boasts a Walkscore of 98.
4875 Dufferin Avenue contains 118 residential suites and approximately 6,300 square feet of commercial space. The property is located in the Hampstead neighborhood and is within 500 meters of the Hampstead Towers acquisition announced by InterRent on June 5, 2019. The property is well located and has a Walkscore of 88, with many neighborhood amenities within close proximity.
The properties were purchased for $154,700,000 and are expected to close in mid July and mid August of 2019. With the addition of these properties, InterRent will increase its Montreal portfolio to 2,681 suites, or 27% of its total portfolio, allowing the REIT to further benefit from enhanced operational scale and efficiencies. The City of Montreal has continued to experience significant population growth with an increase of 1.6% from 2017 to 2018, outpacing the Quebec average of 1.1% and the National average of 1.4%. Montreal also saw a near record low in its unemployment rate of 5.5% in June 2019 and approximately 4% nominal growth of disposable income in 2018. According to Ryerson University's Centre for Urban Research and Land Development, Montreal is the sixth-fastest growing metro in North America.
"We are extremely pleased to announce these acquisitions and to be able to continue growing our footprint in one of the REIT's key growth markets. These properties are centrally located and very close to other properties owned by InterRent thereby providing significant scale and branding opportunities within the neighborhoods," 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 objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) to maintain a conservative payout ratio and balance sheet.
For further information about InterRent please contact:
Brad Cutsey, CFA
Curt Millar, CPA, CA
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: InterRent Real Estate Investment Trust
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