ERES Provides Update on Previously Disclosed Disposition, Announces €53 Million in Additional Dispositions and Distribution Update
TORONTO, July 31, 2025 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust ("ERES" or the "REIT") (TSX:ERE) announced today an update on the expected timing of its previously disclosed disposition, and its anticipated special distribution, as disclosed in its press release dated April 2, 2025. ERES also announced approximately €52.8 million in additional strategic dispositions, and an intention to cease its regular monthly distributions. All amounts disclosed herein exclude transaction costs and other adjustments.
Previously Disclosed Disposition
As previously disclosed on April 2, 2025, a subsidiary of ERES has entered into an agreement with an affiliate of Fortress Investment Group (the "Fortress Affiliate") to sell entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately €337.3 million (the "Previously Disclosed Disposition"). The Fortress Affiliate has represented to ERES that an investor group which includes funds managed by affiliates of Fortress Investment Group will be the beneficiary of the acquisition. The Fortress Affiliate has notified ERES of an expected closing date of September 15, 2025.
Additional Dispositions
ERES also announced that, through certain of its subsidiaries:
It has completed the disposition of its commercial property in Brussels, Belgium, containing 170,414 square feet of gross leasable area, and it has entered into a separate agreement to sell its commercial property in Landshut, Germany, containing 116,132 square feet of gross leasable area, with closing expected by early September 2025, for aggregate gross proceeds of approximately €31.3 million, subject to adjustment and escrow (the "Commercial Dispositions"). The Commercial Dispositions are unencumbered, and net proceeds are intended to be used to fund a special cash distribution, as outlined below.
It has entered into another agreement to sell one unencumbered 110-suite residential property in Rotterdam, the Netherlands, for approximately €21.5 million in gross proceeds. Closing is anticipated by the end of September 2025, after completion of the Previously Disclosed Disposition, Commercial Dispositions and declaration of the special cash distribution. Net proceeds are intended to be used to repay amounts outstanding on the revolving credit facility and for general trust purposes.
There can be no assurance that all requirements for closing of any of the pending dispositions will be obtained, satisfied or waived, nor that the pending dispositions will be completed on the timeframes disclosed herein.
ERES is continuing to work with its financial and real estate advisors in connection with the sale process for the balance of the portfolio, ...
