fast tracking a wrap-up of this REIT I doubt this will exist next year at this time. More likely gone by summer of 2025
TORONTO, Nov. 06, 2024 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (“ERES” or the “REIT”) (TSX:ERE.UN) announced today that the board of trustees of the REIT (the “Board”) has called and will hold, virtually on January 7, 2025, a special meeting (the “Meeting”) of Unitholders (as defined below) of record as of November 25, 2024 to consider, and if deemed appropriate, pass a special resolution (“Special Resolution”) to amend the REIT’s fifth amended and restated declaration of trust dated May 2, 2024 (the “Declaration of Trust”) to provide the Board with the authority: (i) to sell all or substantially all of the assets of the REIT in one or more transactions at such times and on such terms and conditions as determined by the Board, (ii) to distribute the net proceeds of any such sales to Unitholders in the amounts and at the times determined by the Board, and (iii) to wind-up, liquidate, dissolve or take any such similar action to terminate the REIT on such terms and conditions determined by the Board, in each case without any requirement for further Unitholder approval (subject to applicable securities laws). Such an amendment would provide the Board with maximum flexibility in assessing the REIT’s alternatives both with respect to its properties as well as regarding the future of the REIT. The amendment does not adversely impact the protections afforded to minority Unitholders under applicable securities laws.
ERES is in the process of actively marketing certain portfolios of properties pursuant to its value enhancement strategy, in which it is exploring all available opportunities to surface value. To that end, the REIT considers the flexibility to sell properties without the delay of the potential need for a meeting of Unitholders (where the sale amounts to substantially all of the REIT’s properties or in the event of a wind-up or liquidation) would augment its ability to execute on this strategic objective and maximize value. This added flexibility is expected to enable the REIT to move swiftly and opportunistically without the delays and costs of holding a Unitholder meeting, increasing the REIT’s ability to pursue the most attractive transactions available to the REIT. The Board believes that Unitholders are well-aligned in a desire to maximize value and effect attractive sale transactions as swiftly as reasonably possible, which the proposed amendment will facilitate.
In the event that one or more attractive transactions can be secured, the sale of all or substantially all of the properties of the REIT may be in the best interest of the Unitholders. If that were to happen, the Board may consider another special cash distribution. In those circumstances, the Board may also consider a possible sale of either the REIT itself or its remaining properties as the costs of maintaining a public company become increasingly burdensome as the size of the business decreases.
At present, the REIT has entered into two separate agreements to sell a total of 3,179 residential suites in the Netherlands, as described in its press release dated September 16, 2024. Further to that announcement, ERES expects that the 232-suite disposition will close on or about December 2, 2024. In addition, approval has been received from the Dutch competition authority (ACM) for the 2,947-suite disposition, which is expected to close by no later than early Q1 2025. There can be no assurance that all requirements for closing of the aforementioned transactions will be obtained, satisfied or waived. Apart from these disclosed transactions, there are no other agreements currently entered into for the sale of any of the REIT’s properties. The REIT is not in a position to speculate on whether any future sales of properties is likely, or when such sales might occur.