Dream Unlimited has teamed up with two other companies to acquire a Dutch rental-housing portfolio from a Canadian REIT for about C$1 billion in cash.

Through a subsidiary, New York-based TPG is leading an international consortium that includes Toronto-based Dream and Amsterdam-headquartered Stadium Capital Partners, among several other co-investors. The joint-venture has agreed to purchase approximately 3,000 single-family and multi-family units in about 90 cities from Toronto-based European Residential REIT (ERES.)

TPG Angelo Gordon is the TPG subsidiary heading the investment.

“Our partnership with TPG Angelo Gordon and Stadium Capital aligns with our strategic focus on the residential sector,” said Jane Gavan, president of Dream’s asset management business. “This joint-venture allows us to leverage our extensive expertise in residential asset management and builds on our long history of investing and operating in Europe across multiple asset classes.”

The deal is expected to close in early 2025.

Meanwhile, ERES announced that certain subsidiaries have agreed to sell 232 other residential suites in the Netherlands for approximately C$66 million in cash.

And, the REIT’s German subsidiary has completed the sale of one office building in Germany for C$13.6 million in cash.

ERES plans to use net proceeds from all of the Dutch residential dispositions to repay approximately $636.1 million in associated mortgages. The remaining net proceeds will be used to repay amounts outstanding on a revolving credit facility, make prepayments on certain mortgages maturing in the near future and pay unitholders a special cash distribution of an estimated €0.75 per regular unit and an estimated C$1.13 per ERES LP’s exchangeable Class B LP unit.

The German office building was one of four ERES office assets located on the same property. All of the sale’s net proceeds were used to pay down the property’s outstanding mortgage principal.

Following the completion of the Dutch divestments, ERES will have sold approximately half of its residential suites. The REIT plans to reduce its monthly distribution by 50% to correspond to the smaller portfolio.

Pictured: ERES apartment asset in Amsterdam

Photo: ERES