ERES REIT Announces €22MM Multi-Residential Acquisition in the Netherlands
The €22.3 million (C$34.6 million) purchase price (excluding transaction costs and fees) represents an estimated forward capitalization rate of approximately 3.5%. Closing is anticipated on or around December 1, 2020, and ERES intends to finance the acquisition from existing sources of liquidity, with ultimate funding to come from long term mortgage financing thereafter. ERES is in the process of obtaining mortgage financing on the Mill Property, the Doorwerth Property (which closed on September 1, 2020), and the Kairos Property (which closed on October 1, 2020) at a loan-to-value ratio of 55% and an interest rate of approximately 1% for a 4-year term.The Mill Property is well-located, immediately adjacent to two supermarkets, free parking and other amenities. ERES also already owns residential units in Rotterdam, which is the second largest city in the Netherlands by population, the capital of the province of South-Holland, and forms part of the conurbation known as Randstad, therefore allowing for operational synergies with the property to be managed by ERES’s existing asset and property manager established in the region.“ERES’s third acquisition since September of the Mill Property adds to our growing momentum of accretive acquisitions, on the back of the continuing flow of attractive opportunities in the Dutch market,” commented Phillip Burns, CEO of ERES. “Although we currently are operating in an unprecedented environment, our ability to grow and move forward in pursuit of our strategic objectives remains intact. The Mill Property will further enhance the quality and performance of our portfolio, and reflects our continued forward momentum.”About ERESERES is an unincorporated, open-ended real estate investment trust. ERES’s Units are listed on the TSX under the symbol ERE.UN. ERES is Canada’s 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 137 multi-residential properties, comprised of 5,865 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium.ERES’s 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 StatementsAll statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent ERES’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.