/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Sept. 16, 2019 /CNW/ - European Residential Real
Estate Investment Trust (TSX-V:ERE.UN, "ERES") announced today that
it has entered into an agreement to acquire a multi-residential
portfolio comprising 315 residential suites in 16 properties
located in eight regions across the
Netherlands (the "Acquisition Portfolio"). The
Acquisition Portfolio is 91.1% occupied with a weighted average
occupied monthly rent of €904 (C$1,329) per suite excluding service charge
income. All of the suites are located in properties that are
100% owned, and 81% of the suites are considered liberalized.
Closing is expected to occur by September
30, 2019.
The approximately €63.0MM (C$92.6MM) purchase price (excluding transaction
costs) represents an estimated forward capitalization rate of
approximately 4.2%. ERES intends to finance the purchase
price with existing sources of liquidity and a new mortgage
financing of approximately €54MM (C$79MM) for a 7-year term at a
stated interest rate of 1.45%. The approximately €54MM (C$79MM)
mortgage also includes an existing ERES portfolio which was
previously unencumbered.
The properties are located close to major highways, train
stations, bike paths, shopping, restaurants, parking and parks. The
Acquisition Portfolio will be managed by CAPREIT's established
regional office in the Netherlands
and will bring ERES' total residential suite count to 4,174.
"ERES is pleased to announce its third portfolio acquisition
since the original transformative transaction with CAPREIT six
months ago," commented Phillip
Burns, CEO. "This accretive acquisition further demonstrates
ERES' ability to source attractive acquisition opportunities and
scale its multi-residential portfolio. After this acquisition
closes, ERES will have doubled its multi-residential suite count
since the transformative transaction with CAPREIT."
About ERES
ERES is an unincorporated, open-ended real
estate investment trust. ERES' Units are listed on the TSX Venture
Exchange under the symbol ERE.UN. ERES is Canada's only European-focused
multi-residential REIT, with an initial focus on investing in
high-quality multi-residential real estate properties in
the Netherlands. ERES owns a
portfolio of 88 multi-residential properties, comprised of 3,859
suites located in the Netherlands,
and owns two office properties in Germany and one office property in
Belgium.
ERES' registered and principal business office is located at 11
Church Street, Suite 401, Toronto,
Ontario M5E 1W1.
For more information, please visit our website at
www.eresreit.com.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING
STATEMENTS
Certain statements contained in this press
release constitute forward-looking statements within the meaning of
applicable Canadian securities laws which reflect ERES' current
expectations and projections about future results. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as "outlook", "objective", "may",
"will", "expect", "intent", "estimate", "anticipate", "believe",
"consider", "should", "plans", "predict", "estimate", "forward",
"potential", "could", "likely", "approximately", "scheduled",
"forecast", "variation" or "continue", or similar expressions
suggesting future outcomes or events. The forward-looking
statements made in this press release relate only to events or
information as of the date on which the statements are made in this
press release. Actual results and developments are likely to
differ, and may differ materially, from those expressed or implied
by the forward-looking statements contained in this press release.
Such forward-looking statements are based on a number of
assumptions that may prove to be incorrect.
Except as specifically required by applicable Canadian
securities law, ERES does not undertake any obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise, after the date on
which the statements are made or to reflect the occurrence of
unanticipated events. These forward-looking statements should not
be relied upon as representing ERES' views as of any date
subsequent to the date of this press release. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Completion of the acquisition of the Acquisition Portfolio is
subject to a number of conditions. There can be no assurance that
the acquisition of the Acquisition Portfolio will be completed as
proposed or at all.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) have in no way passed upon the merits of the
acquisition of the Acquisition Portfolio and have neither approved
nor disapproved the contents of this news release.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities of ERES.
SOURCE European Residential Real Estate Investment Trust