This news release constitutes a “designated news release” for the purposes of CAPREIT’s prospectus supplement dated February 22, 2024, to its short form base shelf prospectus dated May 9, 2023.
TORONTO, April 02, 2025 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that a subsidiary of European Residential Real Estate Investment Trust (TSX:ERE.UN) (“ERES”) has entered into an agreement 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 $522 million (the “Pending Disposition”). ERES also announced that certain subsidiaries have completed the sale of an entity owning one 104-suite property in the Netherlands for proceeds of approximately $39 million. Amounts disclosed herein exclude transaction costs and other adjustments, and are presented in Canadian dollars based on a Euro foreign exchange rate of 1.55 on April 1, 2025.
In connection with the Pending Disposition, ERES announced that after repaying associated mortgage and other debt, remaining net proceeds are intended to fund a special cash distribution of an estimated $1.24 per ERES Unit and ERES Limited Partnership’s exchangeable Class B LP Unit (together, the “ERES Units”), payable to holders of the ERES Units of record at a date to be determined (the “Special Distribution”). Based on CAPREIT’s effective interest in ERES of approximately 65%, CAPREIT expects to receive approximately $189 million from the Special Distribution following completion of the Pending Disposition.
ERES announced that closing of the Pending Disposition is anticipated between early August and mid-September 2025. There can be no assurance that all conditions of closing will be obtained, satisfied or waived. Further details of the Pending Disposition have been provided by ERES in its press release dated April 2, 2025.
CAPREIT intends to utilize the proceeds from the Special Distribution to: (1) repay debt; (2) fund future acquisitions of on-strategy rental properties in Canada; and (3) for general business purposes.
“We’re proud of the strong progress made on the execution of our repositioning objectives since the start of last year,” commented Mark Kenney, President and Chief Executive Officer of CAPREIT. “These upcoming transactions will further reduce CAPREIT’s non-core European exposure, with an attractive portfolio of only ten residential properties in the Netherlands remaining upon completion, along with two commercial properties. Looking ahead, CAPREIT remains supportive of ERES’s strategy to surface the value of its remaining portfolio and distribute that net equity to its investors, and on our end, we’re looking forward to repatriating that liquidity and reinvesting it back into the residential apartment market in Canada.”
ABOUT CAPREIT
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at December 31, 2024, CAPREIT owns approximately 46,900 residential apartment suites and townhomes (excluding approximately 1,800 suites and sites classified as assets held for sale), that are well-located across Canada and the Netherlands, with a total fair value of approximately $14.9 billion, excluding approximately $0.3 billion of assets held for sale. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosure which can be found under our profile at www.sedarplus.ca.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect CAPREIT’s current expectations and projections about future results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “consider”, “should”, “plans”, “predict”, “estimate”, “forward”, “potential”, “could”, “likely”, “approximately”, “scheduled”, “forecast”, “variation” or “continue”, or similar expressions suggesting future outcomes or events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Actual results and developments may differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Any number of factors could cause actual results to differ materially from these forward-looking statements. Although CAPREIT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including with regards to the expected completion and timing of the Pending Disposition, ERES’s intended use of proceeds from the Pending Disposition, the amount and timing of the Special Distribution and CAPREIT’s intended use of proceeds from the Special Distribution. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward looking statements in this press release are subject to certain risks and uncertainties, many of which are beyond CAPREIT’s control, which could result in actual results differing materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described under the heading “Risks and Uncertainties” in CAPREIT’s 2024 Annual Report and under the heading “Risk Factors” in CAPREIT’s Annual Information Form for the year ended December 31, 2024, each of which is available under CAPREIT’s profile on SEDAR+ at www.sedarplus.ca.
Except as specifically required by applicable Canadian securities law, CAPREIT does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements should not be relied upon as representing CAPREIT’s views as of any date subsequent to the date of this press release.
For more information, please contact:
| CAPREIT Dr. Gina Parvaneh Cody Chair of the Board of Trustees (437) 219-1765 |
CAPREIT Mr. Mark Kenney President & Chief Executive Officer (416) 861-9404 |
| CAPREIT Mr. Stephen Co Chief Financial Officer (416) 306-3009 |
CAPREIT Mr. Julian Schonfeldt Chief Investment Officer (647) 535-2544 |
