TORONTO, Jan. 31, 2022 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (TSX:ERE.UN, “ERES” or the “REIT”) announced today that it has completed the acquisition of 45 residential suites, 3 commercial units and 26 parking spaces located in Rijswijk, the Netherlands (the “De Generaal 2 Property”), and has also entered into an agreement to acquire on a forward-purchase basis a multi-residential property located in Arnhem, the Netherlands (the “FiftyOne Property”).
The newly developed De Generaal 2 Property, acquired for a purchase price of €19.45 million (approximately C$28 million) (excluding transaction costs and fees), brings the REIT’s ownership of the building to 83%, with the REIT having previously purchased 120 suites as part of the recently announced Panorama transaction. The REIT initially funded the acquisition via promissory note to CAPREIT Limited Partnership (“CAPREIT LP”), a subsidiary of Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”), the REIT’s asset and property manager, that will be replaced by long-term mortgage financing at a later date.
The FiftyOne Property is a high-quality re-development comprised of 201 residential apartments that will be 100% owned by the REIT. Closing will take place after completion of the FiftyOne Property and the initial lease-up by the seller, which is expected in early 2022. The €45 million (approximately C$64 million) purchase price (excluding transaction costs and fees) will be funded via long-term mortgage financing at an anticipated loan-to-value of 60%, with the remainder to be financed initially through a promissory note to CAPREIT LP.
Located at the Groningensingel, south of the city centre of Arnhem, the FiftyOne Property enjoys excellent accessibility to highways and public transportation, and is approximately fifteen minutes by bicycle from the city centre. It also is situated conveniently nearby a supermarket, shopping centre, parks and other amenities. The re-developed building is highly sustainable and energy efficient, with approximately 100% of the units expected to be liberalized. Given the REIT’s pre-existing presence in Arnhem and the wider Gelderland province, the FiftyOne Property will likewise be managed by the REIT’s property manager established in the region.
“Expanding our ownership of the modern De Generaal 2 Property represents a testament to our best-in-class management of the building, and provides us with increased scale to be able to further improve upon that,” commented Phillip Burns, CEO of ERES. “We are excited to grow our presence in the charming Rijswijk community, and adding the FiftyOne Property to our portfolio further expands our presence in Arnhem, a strong market in the east of the Netherlands. These two acquisitions continue the external growth momentum from 2021 and cement a strong start to 2022.”
About ERES
ERES is an unincorporated, open-ended real estate investment trust. ERES’s Units are listed on the TSX under the symbol ERE.UN. ERES is Canada’s only European-focused, multi-residential REIT, with a current initial focus on investing in high-quality, multi-residential real estate properties in the Netherlands. ERES owns a portfolio of 152 multi-residential properties, comprised of 6,590 suites and ancillary retail space located in the Netherlands, and owns one office property 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.
Cautionary Statements Regarding Forward-Looking Statements
All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent ERES’s intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.
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