European Residential enters deals to sell 3 properties

Executive Summary

• European Residential Real Estate Investment Trust (ERES) has entered into agreements to sell three residential properties in the Netherlands for a combined consideration of approximately €67.8 million.
• The sale involves 322 residential suites across Roermond, Valkenburg, and Arnhem, with net proceeds intended for general trust purposes and partial use to repay associated mortgage debt.
• The transaction supports the REIT's broader strategic sale process, potentially positioning the company for a final "en-bloc" transaction of its remaining portfolio.

Key Details

• Total Consideration: Approximately €67.8 million (excluding transaction costs and customary adjustments).
• Property 1 (Roermond): Unencumbered 33-suite property sold for approximately €10.0 million.
• Property 2 (Valkenburg): Unencumbered 88-suite property sold for approximately €15.0 million.
• Property 3 (Arnhem): Property containing 201 suites sold for approximately €42.8 million.
• Debt Repayment: Part of the proceeds from the Arnhem sale will be used to repay approximately €15.2 million in associated mortgage debt.
• Closing Timeline: Anticipated between January and April 2026, subject to closing conditions.
• Use of Proceeds: Net proceeds intended for general trust purposes.
• Strategic Context: The dispositions support the REIT's continuing sale process for its remaining portfolio, aiming to pursue a potential final en-bloc transaction.
• Remaining Portfolio: Post-sale, ERES's remaining portfolio consists of around 700 residential suites and ancillary retail space in the Netherlands.
• Financial Adviser: BMO Capital Markets retained to assist in reviewing individual asset sales and advising on the potential en-bloc transaction.
• Portfolio Context: As of Sept. 30, 2025, ERES owned 1,033 residential suites and ancillary retail space in the Netherlands with a total fair value of approximately €311.7 million.

Notable Quotes

• "As previously stated, we're continuing to explore several strategic opportunities to unlock value, including attractive single asset sales such as these," commented Mark Kenney, chief executive officer. "With expected closing of the pending dispositions, ERES's remaining portfolio consists of around 700 residential suites and ancillary retail space in the Netherlands. We're committed to surfacing the maximum value of this portfolio and returning proceeds to unitholders, and we'll provide additional updates as soon as available."