InterRent REIT Announces Filing of Final Prospectus for a $25 Million Offering of Convertible Debentures and Revised Private Placement


    TORONTO, Jan. 9 /CNW/ - InterRent Real Estate Investment Trust
(TSX:IIP.UN) ("InterRent") is pleased to announce that it has filed and
received a receipt from securities commissions and other similar regulatory
authorities in each of the provinces of Canada for a final prospectus 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 final prospectus. InterRent intends to use the
net proceeds of the Offering to reduce indebtedness. Closing of the Offering
is expected to occur on January 15, 2008. The Toronto Stock Exchange (the
"TSX") has conditionally approved the listing of the Debentures and the Units
issuable upon conversion of the Debentures subject to the fulfillment of the
requirements of the TSX on or before March 20, 2008. The Debentures will trade
under the symbol IIP.DB.
    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 has also revised the number of Units to be issued pursuant to
its previously announced non-brokered private placement (the "Private
Placement") to an existing institutional investor. Pursuant to the revised
Private Placement, approximately 809,000 Units will be purchased at a price of
$4.40 per Unit for total gross proceeds of approximately $3,559,600. 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 Private Placement has been conditionally approved by the TSX subject to
the fulfillment of the requirements 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 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:; Gary Traer, Chief Financial Officer,
Tel: (416) 769-0769, Fax: (416) 769-9919, e-mail:, web site:

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