European Residential Real Estate Investment Trust, or ERES, closed on the approximately €232 million acquisition of 26 properties in the Netherlands from Canadian Apartment Properties Real Estate Investment Trust, or CAPREIT.

The portfolio comprises 1,257 residential suites in addition to commercial and parking space in 24 cities and towns across the country.

The acquisition was satisfied by a combination of the assumption of about €97 million of existing mortgage debt related to the assets and the issuance of 50,582,631 class B limited partnership units of ERES LP at C$4 apiece, for a total of approximately €135 million. The limited partnership units are convertible into trust units of ERES on a 1-to-1 basis.

The deal brings the value of investment properties of ERES to approximately €770 million from nearly €530 million, comprising 3,348 multi-residential suites in 67 properties and about 400,000 square feet of gross leasable office area in three commercial properties.

As a result of the transaction, CAPREIT beneficially owns, controls or exercises direction over 132,223,841 class B limited partnership units, or about 88% of ERES' issued and outstanding units on a fully diluted basis. ERES' market capitalization increased to about 150 million outstanding units, including class B limited partnership units, from approximately 99 million.