ERES REIT and CAPREIT Announce Extension of €165M Pipeline Agreement
TORONTO, March 10, 2021 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (TSX:ERE.UN, “ERES”) and Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN, “CAPREIT”) announced today the extension of the pipeline agreement between ERES and CAPREIT (the “Pipeline Agreement”) for an additional two-year period, ending on March 29, 2023.
The Pipeline Agreement, entered on March 29, 2019 following completion of the reverse acquisition that formed ERES, makes up to €165 million (approximately C$248 million) (the “Total Commitment”) available to ERES to acquire properties that comply with ERES’s investment policy, do not contravene the investment policy of CAPREIT and which ERES wishes to purchase but is unable to do so with its own resources. Once any part of the Total Commitment has been repaid, that part of the Total Commitment will be available for re-use under the terms of the Pipeline Agreement.
“The Pipeline Agreement with CAPREIT represents an additional and significant source of immediately available liquidity for ERES that further reinforces the strength of our standalone liquidity position, which itself currently has acquisition capacity in excess of €240 million,” commented Phillip Burns, CEO of ERES. “This supplemental source of in-place capital to acquire properties increases capacity to over €500 million, magnifying ERES's ability to capitalize on attractive opportunities, while also strongly reinforcing the continued support of CAPREIT toward our strategy and long-term potential.”
The Pipeline Agreement was originally effective for an initial two-year period ending on March 29, 2021, which has been extended under the same terms and conditions for a subsequent two-year period, ending on March 29, 2023.
“CAPREIT retains conviction in ERES’s growth journey and remains confident in the ability of ERES to execute on accretive acquisitions in its key markets in the near-term,” added Mark Kenney, President and CEO of CAPREIT. “To this end, the Pipeline Agreement will continue to support ERES’s realization of these ambitions.”