InterRent Real Estate Investment Trust has announced its intention to invest in the Canadian property market as it agreed to acquire two properties in Ottawa’s west end. The value of this deal involving two ideally located properties is of $18,350,000. The acquisitions are to be financed through CMHC insured first mortgages.
Situated in the Crystal Beach neighborhood, in the west end of Ottawa, the two properties comprise of a mix between garden homes and apartments totaling 141 suites. Surrounded by a mostly residential area, these new real estate assets provide striking views of the Ottawa River, and are also close to major bus transit routes, highway 417 and the Bayshore Shopping Center. They are also less than a kilometer away from the old Nortel Campus that has been acquired by Public Works and Government Services Canada and will be converted into a Department of National Defence campus. The 370 acres campus houses 12 buildings and more than 2 million square feet of office space, the majority of National Defence staff in Ottawa being rumored to be relocated here.
The first property InterRent has acquired at the corner of Carling Avenue and Ullswater Drive includes 4 1-bedrooms; 56 2-bedrooms; and 27 garden homes. It will be completed by March 15, 2013. The other one is located at the corner of Carling Avenue and Crystal Beach Drive has 2 1-bedrooms; 28 2-bedrooms; and 24 garden homes, being scheduled for completion by the same date as the first one. The properties’ acquisition entails a going in capitalization rate of 5.75% and are immediately accretive to the REIT.
“With our years of experience in the Ottawa market, we believe that these acquisitions are solid properties in great geographical locations and represent strong additions to the REIT’s portfolio where we believe we can create more value for our Unitholders,” said Mike McGahan, InterRent CEO.