European Commercial Reit Unitholders Approve Transformational Transaction to Create Canada’s Only REIT Focused on European Multi-Residential Properties

TORONTO, March 21, 2019 /CNW/ – European Commercial Real Estate Investment Trust (TSX-V:ERE.UN, “ECREIT“) is pleased to announce the positive outcome of voting at the special meeting (the “Meeting“) of holders (“Unitholders“) of trust units and special voting units (collectively, the “Voting Units“) held earlier today. At the Meeting, Unitholders overwhelmingly approved, among other things, the previously announced indirect acquisition (the “Acquisition“) from Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN, “CAPREIT“) of a portfolio of multi-residential properties located in the Netherlands comprising 2,091 suites in 41 properties, as more particularly described in ECREIT’s management information circular dated February 22, 2019 (the “Circular“) and the supplement thereto dated March 11, 2019 (the “Supplement“). 

The Acquisition is expected to close on March 29, 2019, or such other date as ECREIT and CAPREIT may determine.  

Approval of Acquisition

The Unitholders who were entitled to vote and were present in person or represented via proxy at the Meeting, voted as follows on the resolution to approve the Acquisition:

 

Approval of Amendments to the Declaration of Trust  

The Unitholders who were entitled to vote and were present in person or represented via proxy at the Meeting, voted as follows on the resolution to approve the amendments to ECREIT’s declaration of trust, which are described in the Circular filed on SEDAR at www.sedar.com:

 

Approval of Fixing the Number of Trustees

The Unitholders who were entitled to vote and were present in person or represented via proxy at the Meeting, voted as follows on the resolution to fix the number of trustees of the REIT (the “Trustees“) at six:

 

Approval of Election of New Trustees

The Unitholders who were entitled to vote and were present in person or represented via proxy at the Meeting, voted as follows with respect to the election of Harold Burke, Gina Cody and Michael Stein as new Trustees, effective and conditional upon the completion of the Acquisition:

 

It is expected that following the closing of the Acquisition, existing Trustees Ira Gluskin, Jan Arie Breure and Phillip Burns will continue as Trustees of the REIT.

About ECREIT

ECREIT is an unincorporated, open-ended real estate investment trust. ECREIT’s units are listed on the TSX Venture Exchange (the “TSX-V“) under the symbol ERE.UN. For more information, please visit our website at www.ECREIT.com.

About CAPREIT

As one of Canada’s largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 53,143 residential units, comprised of 45,446 residential suites and 45 manufactured home communities comprising 7,697 land lease sites, located in and near major urban centres across Canada and the Netherlands. Since its Initial Public Offering in May 1997, CAPREIT has grown monthly cash distributions per Unit by 93%. 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.

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 ECREIT’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”, “plans”, “predict”, “estimate”, “potential”, “could”, “likely”, “approximately”, “scheduled”, “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, ECREIT 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 ECREIT’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.

Completion of each of the Acquisition, the acquisition of additional properties pursuant to the Pipeline Agreement (as such term is defined in the Circular) and the issuance of any securities as consideration for any such potential acquisition under the Pipeline Agreement, is subject to a number of conditions, including but not limited to, acceptance by the TSX-V and, if applicable, disinterested Unitholder approval. There can be no assurance that the Acquisition and the acquisition of additional properties pursuant to the Pipeline Agreement will be completed as proposed or at all.  

Investors are cautioned that, except as disclosed in the Circular and the Supplement, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon.

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 proposed Acquisition and have neither approved nor disapproved the contents of this news release.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of ECREIT.

SOURCE European Commercial Real Estate Investment Trust (ECREIT)

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