TORONTO, April 03, 2020 (GLOBE NEWSWIRE) — European Residential Real Estate Investment Trust (TSX-V:ERE.UN, âERESâ) announced today that it has secured mortgage financing on its December 16, 2019 acquisition of a Netherlands property (the âKameleon Propertyâ) in the principal amount of â¬18.7 million for the retail portion and â¬44.3 million for the residential portion. The facilities agreement was executed on March 27, 2020, and provides the retail tranche with a 4-year term to maturity and the residential tranche with a 7-year term to maturity, with proceeds expected by late April 2020.
Today, the REIT fixed all-in mortgage interest rates of 1.45% and 1.64% on the retail and residential tranche, respectively. The REIT intends to use the funds to settle the remaining outstanding balance on the promissory note due Canadian Apartment Properties Real Estate Investment Trust (âCAPREITâ) as well as repay in full the outstanding draw on its revolving credit facility, resulting in total available capacity on its credit facilities of up to â¬100 million. Remaining proceeds of approximately â¬34 million will be held as cash on hand and used for general trust purposes and to maintain the REITâs strong liquidity position going forward.
âFor 2020, we continue to increase the efficiency of our operations, and we also remain focused particularly in the context of the Coronavirus crisis, on maintaining a strong and flexible financial profile,â commented Phillip Burns, CEO of ERES. âWith our significant immediately available liquidity and experienced financial management team, we are confident in the fundamentals of our business now, and in the future.â
About ERES
ERES is an unincorporated, open-ended real estate investment trust. ERESâs Units are listed on the TSX Venture Exchange under the symbol ERE.UN. ERES is Canadaâs 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.
ERESâs 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 ERESâs 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 |
| p.burns@eresreit.com | s.cryer@eresreit.com |
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.