European Residential REIT, or ERES, bought an 18-property Dutch portfolio from fellow multifamily real estate investment trust Canadian Apartment Properties REIT, or CAPREIT.
The portfolio, which includes 942 residential suites in seven urban centers in the Netherlands, was sold for approximately €170.5 million including transaction costs.
The transaction, which is subject to certain post-closing purchase price adjustments, was funded by a combination of about €68.6 million in cash from ERES' recently closed equity offering; a bridge promissory note in the principal amount of €98.5 million provided by ERES LP with an interest rate of 1.35% per annum and a six-month term to maturity, and the issuance of 1,137,139 class B limited partnership units of ERES LP to CAPREIT at $4.40 per class B limited partnership units, which are convertible on a one-to-one basis into ERES trust units.
ERES acquired another 16-property Dutch portfolio from an arm's length institutional owner based in the Netherlands.
The portfolio consisting of 315 residential suites across eight municipalities was sold for about €64.8 million including transactions costs.
It was financed through an approximately €11.0 million in cash and a mortgage funding of about €53.8 million for a seven-year term with an interest rate of 1.45%, which applies to the aforementioned properties and its previously unencumbered existing portfolio.
