Canadian Apartment Properties REIT (CAPREIT) has closed on its take-private acquisition of European Residential REIT (ERES.)

Toronto-based CAPREIT acquired all outstanding units of ERES that it did not already own in an all-cash transaction, valuing the trust at approximately $441 million, including debt.

ERES, also based in Toronto, invested in European multi-family rental properties.

CAPREIT had already owned a majority (65%) stake in ERES. Under the arrangement agreement, a CAPREIT affiliate paid $1.19 per ERES unit to public unitholders. The deal concluded ERES’ multi-year strategic review and wind-down process.

“We are pleased with the outcome of ERES’s final strategic review, which reflects the culmination of a disciplined, multi-year wind-down focused on prudent financial management and value maximization,” Jenny Chou, CFO of ERES, said when the agreement was announced. “Consistent with those principles, this all-cash transaction enables the efficient return of remaining capital to public ERES unitholders, and brings our mandate to an orderly and definitive close.”

With the deal completed, ERES has applied to the applicable securities regulators to cease to be a reporting issuer and to terminate its public-reporting obligations, said the REIT.

Pictured: Former Netherlands property owned by ERES.

Photo: CAPREIT