ERES REIT Announces €63.0MM (C$92.6 MM) Multi-Residential Acquisition in Netherlands
Sep 16, 2019, 10:27 ET
/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."
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
For further information: ERES, Mr. Phillip Burns, Chief Executive Officer, (416) 354-0167, [email protected]; ERES, Mr. Scott Cryer, Chief Financial Officer, (416) 861-5771, [email protected]
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