ERES REIT Announces €20MM Multi-Residential Acquisition in The Netherlands
TORONTO, July 31, 2020 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (TSX:ERE.UN, “ERES” or the “REIT”) announced today that it has entered into an agreement to acquire a multi-residential property located in the municipality of Renkum in the eastern Netherlands (the “Doorwerth Property”). The Doorwerth Property is a three-building, 8-floor multi-residential property that is comprised of 120 residential suites and 24 parking units. It is 100% owned and is currently 97.5% occupied, with approximately 67% of the residential suites liberalized.
The €20.15 million (C$31.9 million) purchase price (excluding transaction costs and fees) represents an estimated forward capitalization rate of approximately 4.3%. Closing is anticipated on or around September 1, 2020, and ERES intends to finance the acquisition using cash on hand, with ultimate funding to come from long term mortgage financing thereafter.
The Doorwerth Property is well-located, being close to a supermarket and other amenities, and in proximity to the centre of Doorwerth. It is also nearby several existing properties owned by ERES, including in the neighbouring municipalities of Arnhem and Nijmegen, which will allow for operational synergies with ERES’s established regional asset and property manager.
“ERES is excited to return to accretive expansion of our high-quality asset portfolio”, commented Phillip Burns, CEO of ERES. “We believe this transaction signals the continued attractiveness of the multi-residential real estate market in the Netherlands and the underlying resilience of the Dutch economy, reinforcing not only ERES’s prime positioning in the market, but also our ability to execute our growth strategy and move forward in these trying times”.
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 131 multi-residential properties, comprised of 5,632 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.
For further information
ERES | ERES | |
Mr. Phillip Burns | Mr. Scott Cryer | |
Chief Executive Officer | Chief Financial Officer | |
416.354.0167 | 416.861.5771 | |
