InterRent REIT Announces Filing of Preliminary Prospectus for a $25 Million Offering of Convertible Debentures and Proposed Private Placement of Units



    /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
    INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
    DISSEMINATION IN THE UNITED STATES./

    TORONTO, Dec. 21 /CNW/ - InterRent Real Estate Investment Trust
(TSX:IIP.UN) ("InterRent") is pleased to announce that it has filed a
preliminary prospectus with securities commissions and other similar
regulatory authorities in each of the provinces of Canada in connection with
the previously announced offering (the "Offering"), on a bought deal basis, of
$25 million of convertible unsecured subordinated debentures (the
"Debentures"). The Debentures have a coupon rate of 7.0% per annum and will be
convertible at the holder's option into units of InterRent (the "Units") prior
to maturity at a conversion price of $4.60 per Unit all upon the terms set out
in the preliminary prospectus. InterRent intends to use the net proceeds of
the Offering to reduce indebtedness. Closing of the Offering is expected to
occur on January 11, 2008 and is subject to the approval of the Toronto Stock
Exchange (the "TSX").
    The Debentures are being offered through a syndicate of underwriters led
by Scotia Capital Inc., and including National Bank Financial Inc., Blackmont
Capital Inc., Dundee Securities Corporation and Desjardins Securities Inc.
    InterRent also intends to issue, pursuant to a non-brokered private
placement (the "Private Placement"), approximately 965,909 Units at a price of
$4.40 per Unit for total gross proceeds of $4,250,000, to an existing
institutional investor. Although the Private Placement is expected to close
concurrently with the closing of the Offering, the closing of the Private
Placement is not dependent on the closing of the Offering. The proceeds from
the Private Placement will be used to fund future acquisitions. The Units
issued under the Private Placement will be subject to a four month hold period
under Canadian securities legislation. The completion of the Private Placement
is subject to the review and approval of the TSX.

    About InterRent

    InterRent is a rapidly expanding, growth oriented real estate investment
trust engaged in building unitholder value through the accretive acquisition,
ownership and operation of strategically located income producing
multi-residential real estate, with 4,007 apartment suites under ownership and
162 under conditional purchase contract, for a total of 4,169 suites in the
province of Ontario.

    Distribution In Canada Only

    This news release is intended for distribution in Canada only and is not
intended for distribution to United States newswire services or dissemination
in the United States. The securities being offered have not, nor will they be
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons absent U.S. registration or an applicable exemption
from the U.S. registration requirements. This release does not constitute an
offer for sale of securities in the United States.

    Forward Looking Statements

    This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable 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 annual information form
dated December 10, 2007 as well as its other publicly filed information which
may be 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.





For further information:

For further information: about InterRent please contact G. Michael
Newman, Chief Executive Officer, Tel: (905) 773-2435, Fax: (905) 773-2437,
e-mail: mike@interrentproperties.com, web site: www.interrentproperties.com;
Gary Traer, Chief Financial Officer, Tel: (416) 769-0769, Fax: (416) 769-9919,
e-mail: gary@interrentproperties.com

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InterRent Real Estate Investment Trust

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