ERES REIT boosts its external growth with a new acquisition of 60 million euros in the Netherlands
TORONTO, November 30, 2021 (GLOBE NEWSWIRE) – European Residential Real Estate Investment Trust (TSX: ERE.UN, “ERES“or the”REIT“) announced today that it has completed the acquisition of a portfolio of two properties comprising a total of 162 residential suites located in the Randstad area of the Netherlands (the”Panorama wallet“).
The Panorama portfolio comprises a newly built property containing 120 suites located in Rijswijk (the “Owned by Rijswijk“) and another property of 42 suites located in Almere (the”Almere property”), Which was acquired for a total purchase price of 60.1 million euros (86.9 million Canadian dollars), excluding transaction costs and fees. The acquisition was initially funded through the REIT’s revolving credit facility, which will subsequently be replaced by long-term mortgage financing that will be arranged in conjunction with the Willem transaction recently announced by the REIT.
The Panorama portfolio is 100% liberalized and currently 97% occupied, with the majority of the vacancy attributable to the newly built property in Rijswijk which was completed earlier this year. Almere’s two-building property is also relatively new and well maintained. At current rent levels, with an average monthly rent (“APR”) occupied of around € 1,000, the Panorama Portfolio has significant potential for increasing rents based on turnover. Both properties will both be managed by ERES ‘existing property and asset manager based in the region, which will ensure operational efficiency and synergy given the REIT’s significant presence in the Randstad region.
“The addition of the Rijswijk and Almere properties to the REIT’s expanding portfolio offers additional external growth milestones in 2021 and strengthens our acquisition momentum which we expect to continue,” commented Phillip Burns, CEO of ERES . “In addition to our strong operational performance announced earlier this month, we are excited and optimistic to seize more growth opportunities for ERES in the future. “
ERES is an unincorporated open-ended real estate investment company. ERES units are listed on the TSX under the symbol ERE.UN. ERES is the only Europe-focused multi-residential REIT in Canada, with a current initial focus on investing in high-quality multi-residential real estate properties in the Netherlands. ERES owns a portfolio of 144 multi-residential buildings, comprising 6,408 suites and ancillary commercial spaces located in the Netherlands, and owns an office building in Germany and an office building in Belgium.
The head office of ERES is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.
For more information, please visit our website at www.eresreit.com.
Cautions Regarding Forward-Looking Statements
All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent the intentions, plans, expectations and beliefs of ERES and are subject to certain risks and uncertainties which could cause actual results to differ materially from these forward-looking statements. These risks and uncertainties are further described in regulatory documents which can be obtained on SEDAR at www.sedar.com.
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Mr. Phillip Burns
Chief executive officer
Mr. Stephen Co