TORONTO, July 9, 2019 /CNW/ – European Residential Real Estate Investment Trust (TSX-V:ERE.UN, “ERES“) is pleased to announce that, through its subsidiary ERES Limited Partnership (“ERES LP“), it has entered into a â¬50 million (approximately C$73 million1) revolving credit facility (the “Credit Facility“) with two Canadian chartered banks. The maturity date of the Credit Facility is July 8, 2021, which may be extended by ERES LP for an additional one (1) year period upon the satisfaction of certain conditions. Draws under the Credit Facility are permitted in Canadian dollars, Euros or British pounds at a floating interest rate based on CDOR, EURIBOR and LIBOR, respectively, and the Credit Facility is fully secured against the assets of ERES and ERES LP (other than certain European subsidiaries and intercompany loans).
As previously announced on June 28, 2019, ERES intends on drawing approximately â¬22 million (approximately C$32 million1) on the Credit Facility on July 10, 2019 to pay Canadian Apartment Properties Real Estate Investment Trust and certain of its subsidiaries (“CAPREIT“) the remaining outstanding consideration in connection with ERES’s indirect acquisition of a portfolio comprised of 21 properties, representing an aggregate of 511 residential suites in six locations in the Netherlands from CAPREIT. Going forward, ERES intends to use the Credit Facility to fund acquisitions, operations and capital improvements as well as for other ongoing trust purposes.
ERES is an unincorporated, open-ended real estate investment trust. ERES’s 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 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.
Cautions Regarding Future Plans and Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect ERES’s 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”, “plan”, “predict”, “estimate”, “potential”, “could”, “likely”, “approximately”, “schedule”, “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.
1 Based on a EUR/CAD exchange rate of 1.4671 as at July 8, 2019.
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 Credit Facility and have neither approved nor disapproved the contents of this news release.
SOURCE European Residential Real Estate Investment Trust
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