/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Sept. 17, 2019 /CNW/ - European Residential
Real Estate Investment Trust (TSX-V:ERE.UN, "ERES" or the "REIT")
announced today that it has priced its previously announced public
offering (the "Offering") of trust units of the REIT (the "Units"),
and that the REIT has entered into an underwriting agreement with a
syndicate of underwriters led by RBC Capital Markets and Scotiabank
(collectively, the "Underwriters") to sell 34,945,000 Units at a
price of C$4.15 per Unit (the
"Offering Price"), subject to the approval of the TSX Venture
Exchange (the "TSX-V"), for aggregate gross proceeds of
approximately C$145 million.
The Offering is expected to close on or about September 24, 2019, subject to satisfaction of
customary closing conditions, including the listing of the Units
sold pursuant to the Offering on the TSX-V.
The REIT has also granted the Underwriters an over-allotment
option exercisable in whole or in part at any time up to 30 days
from the closing of the Offering to purchase up to 5,240,000
additional Units (the "Over-Allotment Option").
As a part of the Offering, CAPREIT has agreed to purchase
4,820,000 Units at the Offering Price representing gross proceeds
of approximately C$20 million.
CAPREIT's current 89% effective interest in ERES will decrease to
76% upon completion of the Offering and completion of the
previously announced portfolio acquisitions described in ERES'
September 16, 2019 press release
(collectively referred to as the "Acquisitions"). Assuming
the Over-Allotment Option is exercised in full, CAPREIT's ownership
would further decrease to 74%.
ERES intends to use the net proceeds from the Offering to
partially finance the Acquisitions, and to partially repay the
approximately €22.5 million outstanding balance on ERES' existing
credit facility. If the Over-Allotment Option is exercised,
the net proceeds will be used to repay indebtedness, fund future
acquisitions, and for general trust purposes.
ERES has filed a preliminary prospectus supplement, and will
file a final prospectus supplement (the "Prospectus Supplement") to
its short form base shelf prospectus dated August 19, 2019 (the "Base Shelf Prospectus")
with the securities regulatory authorities in each of the provinces
and territories of Canada. A copy of the Prospectus
Supplement, following filing thereof, and accompanying Base Shelf
Prospectus may be obtained on SEDAR at www.sedar.com. The Base
Shelf Prospectus contains, and the Prospectus Supplement will
contain, important detailed information about ERES and the
Offering. Prospective investors should read the Prospectus
Supplement and accompanying Base Shelf Prospectus and the other
documents incorporated by reference therein before making an
investment decision.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any securities of ERES in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. The securities being offered have not been and will not
be registered under the U.S. Securities Act of 1933, as amended, or
any state securities laws, and may not be offered or sold in
the United States or to U.S.
persons absent registration or pursuant to applicable exemption
from registration.
ABOUT ERES
ERES is an unincorporated, open-ended real
estate investment trust. ERES' Units are listed on the TSX-V 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 currently
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's 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.
ABOUT CAPREIT
As one of Canada's largest residential landlords,
CAPREIT is a growth-oriented investment trust managing 62,645
suites and sites across Canada,
the Netherlands and Ireland. It owns 59,023 residential units,
comprising of 47,346 residential suites and 72 manufactured home
communities comprising 11,677 land leases sites located in and near
major urban centres across Canada
and The Netherlands. For more
information about CAPREIT, its business and its investment
highlights, please refer to our website at www.caprent.com or
www.capreit.net and our public disclosure which can be found under
our profile at www.sedar.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's 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 Acquisitions and the Offering is subject to a
number of conditions, including but not limited to, acceptance by
TSX Venture Exchange Inc. There can be no assurance that the
Acquisitions or the Offering will be completed as proposed or at
all.
Investors are cautioned that, except as disclosed in the
Prospectus Supplement or the Base Shelf Prospectus, any information
released or received with respect to the Acquisitions or the
Offering may not be accurate or complete and should not be relied
upon.
Neither the TSX-V nor its Regulation Services Provider (as that
term is defined in the policies of the TSX-V) have in no way passed
upon the merits of the Acquisitions or the Offering and have
neither approved nor disapproved the contents of this news
release.
SOURCE European Residential Real Estate Investment Trust