Mr. Phillip Burns reports

ERES REIT SECURES 63 MILLION MORTGAGE FINANCING FOR KAMELEON PROPERTY ACQUISITION

European Residential Real Estate Investment Trust has secured mortgage financing on its Dec. 16, 2019, acquisition of a Netherlands property (the Kameleon property) in the principal amount of 18.7 million euros for the retail portion and 44.3 million euros for the residential portion. The facilities agreement was executed on March 27, 2020, and provides the retail tranche with a four-year term to maturity and the residential tranche with a seven-year term to maturity, with proceeds expected by late April, 2020.

Today, the REIT fixed all-in mortgage interest rates of 1.45 per cent and 1.64 per cent on the retail and residential tranche, respectively. The REIT intends to use the funds to settle the remaining outstanding balance on the promissory note due to Canadian Apartment Properties Real Estate Investment Trust as well as repay in full the outstanding draw on its revolving credit facility, resulting in total available capacity on its credit facilities of up to 100 million euros. Remaining proceeds of approximately 34 million euros will be held as cash on hand and used for general trust purposes and to maintain the REIT's strong liquidity position going forward.

"For 2020, we continue to increase the efficiency of our operations, and we also remain focused particularly in the context of the coronavirus crisis, on maintaining a strong and flexible financial profile," commented Phillip Burns, chief executive officer of European Residential. "With our significant immediately available liquidity and experienced financial management team, we are confident in the fundamentals of our business now, and in the future."

About European Residential Real Estate Investment Trust

European Residential is an unincorporated, open-ended real estate investment trust. It is Canada's only European-focused multiresidential REIT, with a current initial focus on investing in high-quality multiresidential real estate properties in the Netherlands. It owns a portfolio of 131 multiresidential properties, comprising 5,632 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium.

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