TORONTO, Dec. 15, 2020 (GLOBE NEWSWIRE) — European Residential Real Estate Investment Trust (TSX:ERE.UN, âERESâ or the âREITâ) announced today that it has entered into an agreement to acquire a multi-residential property located in Steenwijk, a city in the Dutch province of Overijssel (the âSteenwijk Propertyâ). The building is comprised of 98 residential units which are 100% owned and currently 98% leased.
The â¬12.25 million (C$19 million) purchase price (excluding transaction costs and fees) represents an estimated forward capitalization rate of approximately 4.1%, and closing is anticipated on or around December 29, 2020. The Steenwijk Property is the fourth acquisition by ERES over the course of Q3 and Q4 2020, bringing total acquisition volume to â¬81 million (excluding transaction costs and fees) and increasing aggregate suite count by 415 units. The Steenwijk Property will be financed with currently available liquidity and long-term mortgage financing to be secured alongside the previously announced Doorwerth, Kairos and Mill transactions (which closed on September 1, October 1 and December 1, 2020, respectively) in the amount of â¬45 million combined (representing a loan-to-value ratio of 55%, excluding transaction costs and fees), with an interest rate of approximately 1% for a 4-year term.
The Steenwijk Property is located in the largest town in the centre of the municipality of Steenwijkerland. The multi-residential units reside above the largest supermarket chain in the Netherlands, Albert Heijn, providing tenants with easy accessibility to their everyday needs. ERES additionally already owns properties in the nearby towns of Meppel and Heerenveen, thereby allowing for operational synergies with the property to be managed by ERESâs existing asset and property manager established in the region.
âERESâs acquisition of the Steenwijk Property complements our current portfolio with an attractive initial yield and geographical proximity to existing assets, alongside the high quality of the building itself and surrounding neighbourhoodâ, commented Phillip Burns, CEO of ERES. âWe continue to exercise caution in pursuing growth by acquisition in the context of the current operating environment, but with a backdrop of significant acquisition opportunity in the Dutch market, we expect the recent trend in accretive acquisitions to continue into the new year.â
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 138 multi-residential properties, comprised of 5,949 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.
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|Mr. Phillip Burns||Mr. Scott Cryer|
|Chief Executive Officer||Chief Financial Officer|