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ERES REIT Announces Pricing and Terms of C$145 Million Public Offering
ERES REIT Announces Pricing and Terms of C$145 Million Public Offering Canada News...
About this update from European Residential Real Estate Invt Tr
[{"type":"text","content":"\n\n\n\nERES REIT Announces Pricing and Terms of C$145 Million Public Offering\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Sept. 17, 2019\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/\n TORONTO, Sept. 17, 2019 /CNW/ - European Residential Real Estate Investment Trust (TSX-V:ERE.UN, \"ERES\" or the \"REIT\") announced today that it has priced its previously announced public offering (the \"Offering\") of trust units of the REIT (the \"Units\"), and that the REIT has entered into an underwriting agreement with a syndicate of underwriters led by RBC Capital Markets and Scotiabank (collectively, the \"Underwriters\") to sell 34,945,000 Units at a price of C$4.15 per Unit (the \"Offering Price\"), subject to the approval of the TSX Venture Exchange (the \"TSX-V\"), for aggregate gross proceeds of approximately C$145 million.  The Offering is expected to close on or about September 24, 2019, subject to satisfaction of customary closing conditions, including the listing of the Units sold pursuant to the Offering on the TSX-V.\nThe REIT has also granted the Underwriters an over-allotment option exercisable in whole or in part at any time up to 30 days from the closing of the Offering to purchase up to 5,240,000 additional Units (the \"Over-Allotment Option\").\nAs a part of the Offering, CAPREIT has agreed to purchase 4,820,000 Units at the Offering Price representing gross proceeds of approximately C$20 million.  CAPREIT's current 89% effective interest in ERES will decrease to 76% upon completion of the Offering and completion of the previously announced portfolio acquisitions described in ERES' September 16, 2019 press release (collectively referred to as the \"Acquisitions\").  Assuming the Over-Allotment Option is exercised in full, CAPREIT's ownership would further decrease to 74%.\nERES intends to use the net proceeds from the Offering to partially finance the Acquisitions, and to partially repay the approximately €22.5 million outstanding b...