InterRent REIT Continues Growth With First Acquisitions of 2008

Signs Agreements To Add 264 Suites In Ottawa, Kingston And The GTA

TORONTO, ONTARIO--(Marketwire - March 20, 2008) - InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent") announced today that, in keeping with its strategy of building unitholder value through the accretive acquisition of strategically located multi residential real estate assets to its rapidly expanding Ontario portfolio, it has entered into conditional (on financing only) purchase agreements with arms length parties for the acquisition of six apartment buildings with a total of 264 suites, located in Ottawa, Kingston and Toronto, Ontario, for a total purchase price of $28,892,500 million ($109,441/suite). The buildings are being acquired through a combination of cash from recently completed equity offerings, the issuance of 181,000 units from treasury (the "REIT Units"), at a price of $5.00/unit, and new CMHC insured and assumed, conventional first, and Vendor Take Back (VTB) first and second mortgages. The term of the mortgages is 5 years with a 25 year amortization. The average interest rate on the CMHC insured first mortgages ($16,706,250) is projected at approximately 4.15%, while the average mortgage rate on the VTB second mortgages ($2,790,000) will be 3.56% for an average combined mortgage interest rate of 4.07%. The average loan to value (LTV) ratio will be at 67.4%. The projected average "going in" capitalization rate is 6.81%, with an AFFO yield of 12.5%. The REIT Units to be issued to the Vendors as partial consideration for the transactions will be subject to all regulatory approvals and a statutory four month hold period. With all due diligence on the properties having been successfully completed, and all conditions, with the exception of financing being waived, the acquisitions are scheduled to close in late April and the early part of May 2008. The acquisitions when closed, will increase InterRent's overall portfolio size by 5.6% and generate approximately $3.01 million in annual gross revenues, and an NOI of $1.97 million, or 67.5%. Post these acquisitions InterRent will own a total of 4,271 apartment suites in Ontario.

Of the four properties, being acquired in Ottawa, two are "A" class buildings of condominium quality, containing a total of 92 suites. One building, located in the Crystal Beach area of Ottawa is close to the shore of the Gatineau River, with all 50 suites, registered as condominiums. It has been totally renovated to condominium quality building standards in the past three years The Vendor provided a two year rental guarantee to the Purchaser. The other, 42 suite building is located in the Centertown area of Ottawa. It has undergone a total renovation program to condominium quality standards in 2007, including complete "in suite" improvements, new roof, windows, elevator, HVAC, landscaping, low flush toilets, parking areas and balconies. The Vendor provided a one year rental guarantee to InterRent.

The other two Ottawa properties containing 31 suites each, are located in Ottawa's Carlington area. Both are "B" class buildings that have undergone significant "in suite", common area and infrastructure upgrades in the past year.

The 68 suite, "B" class building being acquired in the GTA's Scarborough neighbourhood, has also undergone major upgrades over the past three years, and is located in close proximity to InterRent's 57 suite building in Ajax, Ontario.

All suites in both the four Ottawa, and one GTA building, are separately metered for hydro, and tenants are responsible for paying their own electricity charges.

The 42 unit "B" class building in Kingston is located in close proximity to InterRent's existing 202 units, which will result in operating cost savings. The building is of concrete construction, and has a new elevator. InterRent intends to undertake "in suite" and common area improvements once it has assumed ownership.

At the same time the REIT also announced that it has terminated its previously announced conditional contract to acquire a total of 162 units in Sudbury and Kingston, Ontario as a consequence of due diligence issues that could not be rectified by the Vendors. All deposits have been returned and mutual releases executed.

Commenting on the upcoming acquisitions, Michael Newman, InterRent's CEO, stated "Ottawa, is the best performing region in our portfolio The acquisition of these four buildings, increases our ownership in that city by 27.7%. The utilisation of our REIT units at above market prices, as part of the purchase price, also preserves cash for additional, future acquisitions. All of the acquisitions, with the exception of Kingston, are of such a quality, that no capital expenditures will be required in the foreseeable future. Management infrastructure to handle these new additions are in place, making any additions to G&A expenses unnecessary."

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 264 suites under contract, for a total of 4,271 apartment suites in Ontario.