ERES REIT Announces Acquisition Of a?¬26.25MM Multi-Residential 5-Property Portfolio

TORONTO, Sept. 18, 2020 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (TSX:ERE.UN, a??ERESa?? or the a??REITa??) announced today that it has entered into an agreement to acquire a multi-residential portfolio of five properties located in the Netherlands (the a??Kairos Portfolioa??). The Kairos Portfolio is comprised of 113 residential suites and 98 parking units across the five properties, which each are 100% owned and currently 99.1% occupied. Approximately 87% of the residential suites are liberalized with a net average monthly rent of a?¬912 per suite.
The a?¬26.25 million (C$41.0 million) purchase price (excluding transaction costs and fees), representing an estimated forward capitalization rate of approximately 3.9%, will be financed initially using immediately available liquidity and ultimately with long-term mortgage financing. Closing is anticipated on or around October 1, 2020, after which the Kairos Portfolio will be managed by ERESa??s existing regional asset and property manager established in the Netherlands.The Kairos Portfolio, located in the municipalities of Hoogezand, Emmen, Hardenberg, Enschede and Maastricht, was constructed between 1997 and 2005, and given the age and quality of the properties ERES anticipates relatively modest capital expenditure needs. The properties reside in green and child-friendly neighbourhoods nearby primary schools, recreational areas and shopping centres, with direct connections to the city centres either by bicycle or by bus accessible within walking distance.In addition, ERES completed the previously-announced purchase of a multi-residential property located in the municipality of Renkum in the eastern Netherlands (the a??Doorwerth Propertya??) on September 1, 2020. The a?¬20.15 million (C$31.9 million) purchase price (excluding transaction costs and fees) represents an estimated forward capitalization rate of approximately 4.3%. ERES financed the acquisition using cash on hand, with ultimate funding to come from long-term mortgage financing.a??We maintain our confidence in the attractiveness of the Dutch multi-residential real estate market, including its defensive characteristics. Amidst the continued disruptiveness characterizing todaya??s economic reality, the acquisition of the Kairos Portfolio and Doorwerth Property evidences our ability to accretively add attractive assets to our growing portfolioa??, commented Phillip Burns, CEO of ERES. a??We will continue prudently to work toward strategically increasing our growth by acquisition on the backbone of this trend, which we expect to continuea??.
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