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ERES REIT SECURES a?¬63 MILLION MORTGAGE FINANCING FOR KAMELEON PROPERTY ACQUISITION

TORONTO, April 03, 2020 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (TSX-V:ERE.UN, a??ERESa??) announced today that it has secured mortgage financing on its December 16, 2019 acquisition of a Netherlands property (the a??Kameleon Propertya??) in the principal amount of a?¬18.7 million for the retail portion and a?¬44.3 million for the residential portion. The facilities agreement was executed on March 27, 2020, and provides the retail tranche with a 4-year term to maturity and the residential tranche with a 7-year term to maturity, with proceeds expected by late April 2020.
Today, the REIT fixed all-in mortgage interest rates of 1.45% and 1.64% on the retail and residential tranche, respectively. The REIT intends to use the funds to settle the remaining outstanding balance on the promissory note due Canadian Apartment Properties Real Estate Investment Trust (a??CAPREITa??) as well as repay in full the outstanding draw on its revolving credit facility, resulting in total available capacity on its credit facilities of up to a?¬100 million. Remaining proceeds of approximately a?¬34 million will be held as cash on hand and used for general trust purposes and to maintain the REITa??s strong liquidity position going forward.a??For 2020, we continue to increase the efficiency of our operations, and we also remain focused particularly in the context of the Coronavirus crisis, on maintaining a strong and flexible financial profile,a?? commented Phillip Burns, CEO of ERES. a??With our significant immediately available liquidity and experienced financial management team, we are confident in the fundamentals of our business now, and in the future.a??About ERESERES is an unincorporated, open-ended real estate investment trust. ERESa??s Units are listed on the TSX Venture Exchange under the symbol ERE.UN. ERES is Canadaa??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 131 multi-residential properties, comprised of 5,632 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium.
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