CAPREIT sells over $1 billion in European properties, Sept 2024

On September 16, 2024, CAPREIT announced significant transactions involving its European subsidiary, ERES. The agreements include the sale of 3,179 residential suites located in the Netherlands and one commercial building in Germany, with total proceeds estimated at approximately $1.1 billion. This strategic move is part of CAPREIT's efforts to streamline its investment portfolio and focus on core operations in Canada. A portion of the proceeds from these sales is earmarked for a special cash distribution of approximately $1.13 per ERES Unit, benefiting holders of these units. Additionally, ERES plans to reduce its monthly distribution rate by about 50% following the completion of these transactions. The anticipated closings are expected by early Q1 2025, subject to regulatory approvals and closing conditions. CAPREIT intends to utilize the proceeds from the special distribution to repay amounts drawn on its revolving credit facility, fund future acquisitions of rental properties in Canada, and for general business purposes, including capital expenditures and debt repayment. This approach aims to enhance the overall quality of CAPREIT's Canadian apartment portfolio. The completion of these transactions is expected to unlock significant value for unitholders and align with CAPREIT's strategic objectives. The Chair of the Board of Trustees, Gina Parvaneh Cody, emphasized the importance of these transactions in achieving multiple strategic goals for both ERES and CAPREIT.