TORONTO, March 10, 2021 (GLOBE NEWSWIRE) — European Residential Real Estate Investment Trust (TSX:ERE.UN, âERESâ) and Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN, âCAPREITâ) announced today the extension of the pipeline agreement between ERES and CAPREIT (the âPipeline Agreementâ) for an additional two-year period, ending on March 29, 2023.
The Pipeline Agreement, entered on March 29, 2019 following completion of the reverse acquisition that formed ERES, makes up to â¬165 million (approximately C$248 million) (the âTotal Commitmentâ) available to ERES to acquire properties that comply with ERESâs investment policy, do not contravene the investment policy of CAPREIT and which ERES wishes to purchase but is unable to do so with its own resources. Once any part of the Total Commitment has been repaid, that part of the Total Commitment will be available for re-use under the terms of the Pipeline Agreement.
âThe Pipeline Agreement with CAPREIT represents an additional and significant source of immediately available liquidity for ERES that further reinforces the strength of our standalone liquidity position, which itself currently has acquisition capacity in excess of â¬240 million,â commented Phillip Burns, CEO of ERES. âThis supplemental source of in-place capital to acquire properties increases capacity to over â¬500 million, magnifying ERES’s ability to capitalize on attractive opportunities, while also strongly reinforcing the continued support of CAPREIT toward our strategy and long-term potential.â
The Pipeline Agreement was originally effective for an initial two-year period ending on March 29, 2021, which has been extended under the same terms and conditions for a subsequent two-year period, ending on March 29, 2023.
âCAPREIT retains conviction in ERESâs growth journey and remains confident in the ability of ERES to execute on accretive acquisitions in its key markets in the near-term,â added Mark Kenney, President and CEO of CAPREIT. âTo this end, the Pipeline Agreement will continue to support ERESâs realization of these ambitions.â
About ERES
ERES is an unincorporated, open-ended real estate investment trust. ERESâs Units are listed on the TSX 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 139 multi-residential properties, comprised of 6,047 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium. For more information, please visit our website at www.eresreit.com.
About CAPREIT
As Canadaâs largest publicly-traded provider of quality rental housing, CAPREIT currently owns or has interests in approximately 67,600 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada, in the Netherlands and Ireland. For more information about CAPREIT, its business and its investment highlights, please visit 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.
ERES and CAPREITâs registered and principal business office is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.
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. Stephen Co |
| Chief Executive Officer | Chief Financial Officer |
| 416.354.0167 | 416.306.3009 |
| p.burns@eresreit.com | s.co@eresreit.com |
| CAPREIT | CAPREIT |
| Mr. Mark Kenney | Mr. Scott Cryer |
| President & CEO | Chief Financial Officer |
| 416.861.9404 | 416.861.5771 |
| m.kenney@capreit.net | s.cryer@capreit.net |