InterRent REIT raises $201M to fund Montreal property acquisitions

Montreal
Montreal.

Ottawa-based InterRent REIT announced this week it closed $201.3 million in bought deal financing to fund a series of acquisitions, bolstering its Montreal portfolio.

The real estate investment trust said Tuesday it had raised the money after a syndicate of underwriters, led by Scotia Capital, Desjardins Securities and BMO Nesbitt Burns, exercised over-allotment options on its public offering of shares.

The fresh cash will go towards paying down debt and funding acquisitions, including InterRent’s plans to acquire four properties in Montreal at a total value of $166 million. If all four deals close, the REIT will add 716 residential suites and some 15,000 square feet of commercial space to its Montreal portfolio, which it will then seek to reposition.

Separately, InterRent has acquired a residential property in Montreal containing 121 residential suites and 31,500 square feet of commercial space in a deal worth $38 million.

Should all aforementioned deals close, the REIT’s Montreal portfolio will feature 20 properties totalling 2,735 suites.

The company's shares closed the trading day Tuesday at $14.15 on the Toronto Stock Exchange, up one per cent.