ERES Details Recent Dispositions and Special Distribution Plans

Update on ERES Dispositions and Future Plans

TORONTO — European Residential Real Estate Investment Trust (“ERES” or the “REIT”) has shared an important update regarding its recent strategic moves. This includes details on previously disclosed and upcoming dispositions that are set to impact its operations significantly.

Details on Previously Disclosed Disposition

ERES has established an agreement with an affiliate of Fortress Investment Group to sell entities that own 1,446 residential suites in the Netherlands. This deal is expected to generate proceeds close to €337.3 million, after adjusting for taxes and other considerations. As a leading partner in this transaction, the Fortress Affiliate has indicated a planned closing on September 15, ensuring a well-structured transition.

Recent and Strategic Additional Dispositions

In addition to the previously disclosed disposition, ERES has confirmed several new transactions aimed at optimizing its asset portfolio. These include:

1. Completion of the sale of a commercial property in Brussels, Belgium, which spans 170,414 square feet. ERES also has plans to sell a further commercial asset in Landshut, Germany, consisting of 116,132 square feet, with expectations of closing by early September. Both transactions are projected to yield combined proceeds of approximately €31.3 million.
2. Additionally, ERES is in the process of disposing of a 110-suite residential property in Rotterdam, expected to secure roughly €21.5 million. The closing is anticipated shortly after the previously disclosed transactions.

These strategic divestitures are projected to bolster ERES’s financial standing, allowing for a responsible approach toward its distributions.

Special Distribution on the Horizon

Once these pending transactions are finalized, ERES is poised to declare a special distribution estimated at €0.90 per REIT unit. This is a significant increase from earlier estimates and reflects ERES's commitment to enhancing value for its unitholders. This distribution, expected to convert to approximately C$1.43, is set for units held prior to September 22.

Ceasing Regular Monthly Distributions

In light of recent portfolio alterations, the Board of Trustees has decided to halt regular monthly distributions as ERES resituates its financial strategy. This tough but necessary decision is taken to maximize returns while ensuring a focused execution of the company’s long-term objectives. The final regular distribution is anticipated to occur in August, prior to the shift towards strategic distributions.

About ERES

Founded as a unique, open-ended real estate investment trust, ERES is dedicated to managing a portfolio focused on Europe, particularly the Netherlands. With 2,594 residential suites and ancillary retail spaces under its management, ERES strives to provide exceptional value for its stakeholders. The current estimated fair value of their properties stands around €729.1 million, marking a strong position in the European real estate market.

Frequently Asked Questions

What is the recent development regarding ERES's disposition?

ERES has disclosed a significant agreement for selling residential suites in the Netherlands and additional commercial properties, which aims to enhance its financial stability.

What is the expected amount of the special distribution?

The anticipated special distribution is estimated to be €0.90 per REIT unit, an increase compared to earlier forecasts.

Why is ERES ceasing regular monthly distributions?

The decision is based on the strategic restructuring of ERES’s portfolio focusing on maximizing returns and prudent financial management.

When will the special distribution be paid?

The special distribution is planned to be payable on September 25, subject to the completion of pending transactions.

Who can I contact for more information about ERES?

For further inquiries, please reach out to Dr. Gina Parvaneh Cody, Chair of the Board, at (437) 219-1765; Mr. Mark Kenney, CEO, at (416) 861-9404; or Ms. Jenny Chou, CFO, at (416) 354-0188.

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