InterRent REIT Announces $50 Million Offering of Trust Units

/NOT FOR RELEASE TO THE UNITED STATES OR TO U.S. WIRE SERVICES/

TORONTO, Feb. 7 /CNW/ - InterRent Real Estate Investment Trust (TSX-V: IIP.UN) ("InterRent") is pleased to announce that it has filed a (final) short form prospectus in connection with an underwritten $50,000,500 offering of units (the "Offering") at a price of $5.50 per unit. The Underwriters for the Offering were Canaccord Capital Corporation, Blackmont Capital Inc., National Bank Financial Inc., Scotia Capital Inc., Dundee Securities Corporation, MGI Securities Inc. and Raymond James Ltd. (collectively, the "Underwriters"). The Underwriters have been granted an over-allotment option to acquire up to an additional 15% of the Offering for a period of 30 days following closing of the Offering. InterRent intends to use the net proceeds of the Offering to acquire multi-residential real estate properties currently under contract, additional properties under consideration, repay outstanding debt and general corporate purposes. Closing of the Offering is expected to occur on or about February 13, 2007 and is subject to, among other things, regulatory approval.

InterRent's board of trustees has approved an initial monthly cash distribution of approximately $0.0317 per unit, or $0.38 per unit on an annualized basis, which is estimated to be 95% of distributable income. The initial payment is expected to be paid on March 15, 2007, to all unitholders of InterRent of record as at February 28, 2007.

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 1,828 apartment suites under ownership and approximately 1,200 suites under contract, for a total of more than 3,000 apartment suites.

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 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.

In particular, there is no assurance that the specified equity issue will be completed on schedule or at all as the completion will be conditional upon prevailing market conditions. There is no assurance that the proposed acquisitions specified in the (final) short form prospectus will be completed within the anticipated timeframes set out therein or at all. These transactions are all conditional upon financing. There is no assurance that unit distributions will commence at a specified time or amount and such distribution amounts may be reduced or discontinued at any time.

Distributable income (or a substantially similar term) is a measure sometimes used by Canadian real estate investment trusts as an indicator of financial performance and does not have a standardized meaning prescribed by Canadian generally accepted accounting principals ("GAAP"). Distributable income is referred to in this press release as it reflects the ability of InterRent to earn income and to make distributions of cash to unitholders and therefore is considered a useful measure of cash available for distribution. Distributable income as computed by InterRent may differ from similar computations as reported by other real estate investment trusts and, accordingly, may not be comparable to distributable income reported by other such issuers. Generally, distributable income differs from net income, a GAAP measure, in that to determine distributable income for any period, net income is adjusted for depreciation and amortization and other non-cash operating expenses and non-recurring items.

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release.

Contacts

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