TORONTO, Sept. 30, 2019 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (âCAPREITâ) (TSX:CAR.UN) announced today that it has completed the sale of a portfolio comprised of 18 properties representing an aggregate of 942 residential suites in seven urban centres in the Netherlands to European Residential Real Estate Investment Trust (TSX-V:ERE.UN, “ERES”). Total proceeds from the sale were approximately â¬170.5 million, which is subject to certain post-closing purchase price adjustments, was funded by:
| (i) | approximately â¬68.6 million in cash; | |
| (ii) | a bridge promissory note provided by ERES Limited Partnership (“ERES LP”), a subsidiary of ERES, to CAPREIT in the principal amount of â¬98.5 million carrying an interest rate of 1.35% per annum with a six-month term to maturity, which ERES can repay without penalty at any time; and | |
| (ii) | the issuance of 1,137,139 class B limited partnership units of ERES LP (the “Class B LP Units”) to CAPREIT at $4.40 per Class B LP Unit based on the five-day volume weighted average price. The Class B LP Units are convertible on a one-to-one basis into trust units of ERES (the “Units”); and |
âWith this transaction we have now sold ownership in all of our Netherlands properties to ERES, a strong testament to our confidence in ERES and our continuing commitment to their growth and success over the long term,â commented Mark Kenney, President and CEO. âWe expect to see a meaningful increase in fee revenue as we provide property and asset management services to the growing ERES portfolio while also providing our Unitholders with the ability to participate through our increased ownership position in ERES as they prosper going forward.â
ABOUT CAPREIT
As one of Canada’s largest residential landlords, CAPREIT is a growth-oriented investment trust managing 63,478 suites and sites across Canada, the Netherlands and Ireland. It owns, directly in Canada and indirectly in Netherlands through its investment in ERES, a total of 59,844 residential units, comprising 48,167 residential suites and 72 manufactured home communities comprising 11,677 sites located in and near major urban centres.
For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net, and our public disclosure which can be found under our profile at www.sedar.com.
ABOUT ERES
ERES is an unincorporated, open-ended real estate investment trust. ERES’ 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 122 multi-residential properties, comprised of 5,116 suites located in the Netherlands, and owns two office properties in Germany and one office property in Belgium. 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 CAPREIT’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 more information, please contact:
| CAPREIT Mr. Michael Stein Chairman (416) 861-5788 |
CAPREIT Mr. Mark Kenney President & CEO (416) 861-9404 |
CAPREIT Mr. Scott Cryer Chief Financial Officer (416) 861-5771 |