TORONTO, July 9, 2019 /CNW/ - European Residential Real
Estate Investment Trust (TSX-V:ERE.UN, "ERES") is pleased to
announce that, through its subsidiary ERES Limited Partnership
("ERES LP"), it has entered into a €50 million
(approximately C$73
million1) revolving credit facility (the
"Credit Facility") with two Canadian chartered banks. The
maturity date of the Credit Facility is July
8, 2021, which may be extended by ERES LP for an additional
one (1) year period upon the satisfaction of certain conditions.
Draws under the Credit Facility are permitted in Canadian dollars,
Euros or British pounds at a floating interest rate based on CDOR,
EURIBOR and LIBOR, respectively, and the Credit Facility is fully
secured against the assets of ERES and ERES LP (other than certain
European subsidiaries and intercompany loans).
As previously announced on June 28,
2019, ERES intends on drawing approximately €22 million
(approximately C$32
million1) on the Credit Facility on July 10, 2019 to pay Canadian Apartment
Properties Real Estate Investment Trust and certain of its
subsidiaries ("CAPREIT") the remaining outstanding
consideration in connection with ERES's indirect acquisition of a
portfolio comprised of 21 properties, representing an aggregate of
511 residential suites in six locations in the Netherlands from CAPREIT. Going forward,
ERES intends to use the Credit Facility to fund acquisitions,
operations and capital improvements as well as for other ongoing
trust purposes.
About ERES
ERES is an unincorporated, open-ended real estate investment
trust. ERES's units are listed on the TSX-V under the symbol
ERE.UN. ERES is Canada's only
European-focused multi-residential REIT, with an initial focus on
investing in high-quality multi-residential real estate properties
in the Netherlands. ERES owns a
portfolio of 88 multi-residential properties, comprised of 3,859
suites located in the Netherlands,
and owns two office properties 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.
Cautions Regarding Future Plans and
Forward-Looking Information
Certain statements contained in this press release constitute
forward-looking statements within the meaning of applicable
Canadian securities laws which reflect ERES's current expectations
and projections about future results. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "outlook", "objective", "may", "will",
"expect", "intent", "estimate", "anticipate", "believe",
"consider", "should", "plan", "predict", "estimate", "potential",
"could", "likely", "approximately", "schedule", "forecast",
"variation" or "continue", or similar expressions suggesting future
outcomes or events. The forward-looking statements made in this
press release relate only to events or information as of the date
on which the statements are made in this press release. Actual
results and developments are likely to differ, and may
differ materially, from those expressed or implied by the
forward-looking statements contained in this press release. Such
forward-looking statements are based on a number of assumptions
that may prove to be incorrect.
Except as specifically required by applicable Canadian
securities law, ERES does not undertake any obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise, after the date on
which the statements are made or to reflect the occurrence of
unanticipated events. These forward-looking statements should not
be relied upon as representing ERES's views as of any date
subsequent to the date of this press release. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
1 Based on a EUR/CAD exchange rate of 1.4671 as
at July 8, 2019.
Neither the TSX-V nor its Regulation Services Provider (as that
term is defined in the policies of the TSX-V) have in no way passed
upon the merits of the Credit Facility and have neither approved
nor disapproved the contents of this news release.
SOURCE European Residential Real Estate Investment Trust