TORONTO, Jan. 31, 2020 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (TSX-V:ERE.UN, “ERES”) announced today that it has closed on the sale of the previously announced disposition of its commercial property in Düsseldorf, Germany (the “Düsseldorf Property”) to an arm’s length third party purchaser. The sale price of the Düsseldorf Property of €16.9 million has been satisfied with cash from the purchaser, of which the REIT intends to use the net proceeds to reinvest in multi-residential assets after settlement of the outstanding mortgage with a principal balance of approximately €7.0 million and associated interest rate swap, and other disposition costs.
The Düsseldorf Property consists of approximately 5,436 square metres of gross leasable area and currently has eight units, of which 100% are occupied upon closing of the sale. A disposition fee of approximately €169,000 has been incurred in connection to the sale, representing 1.0% of total gross proceeds pursuant to the REIT’s amended asset management agreement.
“As we evolve in pursuit of our multi-residential growth strategy, we continue to make strategic alignments and capitalize on opportunities that enhance the value of ERES,” commented Phillip Burns, CEO of ERES. “We will invest the proceeds from the sale into accretive growth opportunities in the quarters ahead”.
About ERES
ERES is an unincorporated, open-ended real estate investment trust. ERES’s Units are listed on the TSX Venture Exchange 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 131 multi-residential properties, comprised of 5,632 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
ERES
Mr. Phillip Burns
Chief Executive Officer
416.354.0167
p.burns@eresreit.com
ERES
Mr. Scott Cryer
Chief Financial Officer
416.861.5771
s.cryer@eresreit.com
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.