- European Residential Real Estate Investment Trust (ERE.UN) has agreed to acquire a multi-residential property in the Netherlands
- The Doorwerth property consists of 120 residential suites, 117 of which are currently occupied
- ERES REIT will pay the C$31.9 million purchase price with cash on hand, with ultimate funding from long-term mortgage financing
- The company expects the transaction for the property to close on or around September 1, 2020
- European Residential Real Estate Investment Trust (ERE.UN) is up 1.49 per cent and is currently trading at $4.10 per share
European Residential Real Estate Investment Trust (ERE.UN) has agreed to acquire a multi-residential property in the Netherlands.
The Doorwerth property is located in Renkum, a Dutch municipality in the country’s eastern region. It is situated near a supermarket and other amenities, and within proximity of the centre of the Doorwerth village.
Conveniently, the property is also near several other properties owned by European Residential REIT, in areas like Arnhem and Nijmegen. This acquisition will enable operational synergies with the company’s established regional asset and property manager.
The property’s three buildings have eight floors each, for a combined total of 120 residential suites and 24 parking units. 117, or 97.5 per cent of the 120 residential suites are currently occupied.
The property has a purchase price of €20.15 million, or approximately C$31.9 million, excluding transaction costs and fees. European Residential REIT will finance the acquisition using cash on hand, with ultimate funding coming from long-term mortgage financing afterwards.
The company expects the transaction for the property to close on or around September 1, 2020.
European Residential REIT’s CEO, Phillip Burns, commented on the property acquisition.
“ERES is excited to return to accretive expansion of our high-quality asset portfolio.
“We believe this transaction signals the continued attractiveness of the multi-residential real estate market in the Netherlands and the underlying resilience of the Dutch economy, reinforcing not only ERES’ prime positioning in the market, but also our ability to execute our growth strategy and move forward in these trying times,” he said.
European Residential Real Estate Investment Trust (ERE.UN) is up 1.49 per cent and is trading at $4.10 per share at 1:41pm EDT.