European Residential Real Estate Investment Trust announced that it has completed the acquisition of 45 residential suites, 3 commercial units and 26 parking spaces located in Rijswijk, the Netherlands (the “De Generaal 2 Property”), and has also entered into an agreement to acquire on a forward-purchase basis a multi-residential property located in Arnhem, the Netherlands (the “FiftyOne Property”). The newly developed De Generaal 2 Property, acquired for a purchase price of €19.45 million (approximately CAD 28 million) (excluding transaction costs and fees), brings the REIT's ownership of the building to 83%, with the REIT having previously purchased 120 suites as part of the recently announced Panorama transaction. The REIT initially funded the acquisition via promissory note to CAPREIT Limited Partnership (“CAPREIT LP”), a subsidiary of Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”), the REIT's asset and property manager, that will be replaced by long-term mortgage financing at a later date.

The FiftyOne Property is a high-quality re-development comprised of 201 residential apartments that will be 100% owned by the REIT. Closing will take place after completion of the FiftyOne Property and the initial lease-up by the seller, which is expected in early 2022. The €45 million (approximately CAD 64 million) purchase price (excluding transaction costs and fees) will be funded via long-term mortgage financing at an anticipated loan-to-value of 60%, with the remainder to be financed initially through a promissory note to CAPREIT LP.

Located at the Groningensingel, south of the city centre of Arnhem, the FiftyOne Property enjoys excellent accessibility to highways and public transportation, and is approximately fifteen minutes by bicycle from the city centre. It also is situated conveniently nearby a supermarket, shopping centre, parks and other amenities. The re-developed building is highly sustainable and energy efficient, with approximately 100% of the units expected to be liberalized.

Given the REIT's pre-existing presence in Arnhem and the wider Gelderland province, the FiftyOne Property will likewise be managed by the REIT's property manager established in the region.