TORONTO, Nov. 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 comprised of an aggregate 162 residential suites located in the Randstad region of the Netherlands (the "Panorama Portfolio").
The Panorama Portfolio includes one newly-built property containing 120 suites located in Rijswijk (the "Rijswijk Property") and another 42-suite property located in Almere (the "Almere Property"), that was acquired for a total purchase price of ?60.1 million (C$86.9 million), excluding transaction costs and fees. The acquisition has been initially funded using the REIT's revolving credit facility, which will subsequently be replaced with long-term mortgage financing to be arranged in combination with the REIT's recently announced Willem transaction.
The Panorama Portfolio is 100% liberalized and currently 97% occupied, with the majority of vacancy attributable to the newly-built Rijswijk Property that was completed earlier this year. The two-building Almere Property is also relatively new and well-maintained. At current rent levels, with occupied Average Monthly Rent ("AMR") of approximately ?1,000, the Panorama Portfolio contains significant potential for rental uplifts upon turnover. The two properties will both be managed by ERES's existing asset and property manager established in the region, that will provide 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 delivers additional external growth milestones in 2021, and furthers our acquisition momentum that we expect to continue," commented Phillip Burns, CEO of ERES. "Alongside our strong operational performance announced earlier this month, we are excited and optimistic to seize more growth opportunities for ERES going forward."
ERES is an unincorporated, open-ended real estate investment trust. ERES's Units are listed on the TSX under the symbol ERE.UN. ERES is Canada'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 144 multi-residential properties, comprised of 6,408 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium.
ERES's registered and principal business office is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.
For more information, please visit our website at www.eresreit.com.
Cautionary Statements Regarding Forward-Looking Statements
All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent ERES's intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.
For further information
Mr. Phillip Burns
Chief Executive Officer
Mr. Stephen Co
Chief Financial Officer
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