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European Residential REIT and CAPREIT Announce Closing of Warehoused Portfolio Acquisition
European Residential REIT and CAPREIT Announce Closing of Warehoused Portfolio Acquisition...
About this update from European Residential Real Estate Invt Tr
[{"type":"text","content":"\n\n\n\nEuropean Residential REIT and CAPREIT Announce Closing of Warehoused Portfolio Acquisition\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\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, May 31, 2019\n\n\n\nTORONTO, May 31, 2019 /CNW/ - European Residential Real Estate Investment Trust (TSX-V:ERE.UN, \"ERES\") and Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN, \"CAPREIT\") are pleased to announce the closing of the previously announced acquisition (the \"Transaction\") by ERES from CAPREIT of a portfolio (the \"Warehoused Portfolio\") comprised of 26 properties, representing an aggregate of 1,257 residential suites and certain additional ancillary commercial space and parking facilities, located in 24 cities and towns across the Netherlands, as more particularly described in ERES's management information circular dated April 23, 2019 (the \"Circular\"). The purchase price for the Warehoused Portfolio of approximately €232 million, subject to certain post-closing purchase price adjustments, was satisfied by a combination of: (i) the assumption of approximately €97 million aggregate principal amount of existing mortgage debt net of financing fees associated with the Warehoused Portfolio, bearing a weighted average 1.98% fixed interest rate and a weighted average 6.6 year term to maturity; and (ii) the issuance of 50,582,631 class B LP units of ERES Limited Partnership (the \"Class B LP Units\"), a subsidiary of ERES, at a price of C$4.00 per Class B LP Unit, in the aggregate amount of approximately €135 million. The Class B LP Units are convertible on a one-to-one basis into trust units of ERES (\"Units\").\nThe Transaction was completed pursuant to the previously announced pipeline agreement dated March 29, 2019 between ERES and CAPREIT Limited Partnership, which was approved by the holders of units and special voting units of ERES at a special meeting held on March 21, 2019.\nThe issuance of Class B LP Units in connection with the Transaction was overwhelmingly approved by disinterested unitholders of ERES at ERES' annual and special mee...