European Commercial REIT to acquire a CAPREIT portfolio of multi-residential properties in the Netherlands for $634 million to create Canada’s first European-focused multi-residential REIT

December 27, 2018

On December 10, 2018, European Commercial Real Estate Investment Trust (“ECREIT”) (TSX-V: ERE.UN) entered into a purchase agreement to acquire a portfolio of multi-residential properties located in the Netherlands from Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX: CAR.UN) comprising of 2,091 suites in 41 properties, valued at $634 million. The purchase price for the properties is based on an independent appraisal and will be satisfied by: (i) $239 million through the issuance of 59.6 million ECREIT units to CAPREIT at a price of $4.00 per unit; (ii) $88 million through a cash payment, or to the extent ECREIT is unable to satisfy the portion of the Purchase Price in cash, through the issuance of additional ECREIT units at a price of $4.00 per unit to CAPREIT; and (iii) $307 million through the assumption by ECREIT of CAPREIT’s mortgages on the Properties, subject to certain purchase price adjustments. In connection with the closing, ECREIT’s unitholders of record at a date to be determined prior to Closing also will receive a one-time special distribution of $0.50 per unit, which will be funded by an approximately $8 million cash payment by CAPREIT to ECREIT. The Transaction will create Canada’s first European-focused multi-residential REIT.

Miller Thomson advised ECREIT in in this transaction with a team led by Adam Kline, and including Lawrence Wilder, Tom Koutoulakis, Jonathan Tong (Capital Markets & Securities), Deven Rath and Phil Long (Corporate/M&A).