pcNewsWire – European Commercial Real Estate Investment Trust (EC-REIT) has completed previously announced the acquisition of an office property located in Landshut, Germany for approximately €30.2 million.
European Commercial Real Estate Investment Trust Announces Closing of Acquisition in Germany
TORONTO, ONTARIO–(Marketwired – May 11, 2017) –
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European Commercial Real Estate Investment Trust (together with its subsidiaries, as the context may require, “EC-REIT” or the “REIT”) (TSX VENTURE:ERE.UN) is pleased to announce that it has closed its acquisition of an office property located in Landshut, Germany, part of the greater Munich metropolitan region, for approximately EUR30.2 million (the “Acquisition Property”), as previously announced on March 22, 2017.
The Acquisition Property is an approximately 172,900 square foot (16,000 square meters) office property that is wholly leased to a subsidiary of E.ON SE, a Global 500 company with an investment grade credit rating, and is well served by a comprehensive road and public transportation network. The Acquisition Property comprises two building complexes erected between 2002 and 2012. The contractual lease has a weighted average lease term greater than 8 years.
The acquisition was financed, in part, with proceeds from a recently completed public offering and private placement. The remainder of the purchase price was financed via a 7-year secured mortgage provided by HSH Nordbank, a commercial bank headquartered in Germany.
Phillip Burns, Chief Executive Officer of EC-REIT, stated, “Following soon after completion of our recent capital raise, we are very pleased to close this transaction and further demonstrate EC-REIT’s ability to execute our strategy. Europe continues to be a supportive environment in which to deliver value for our investors, and this is evidenced by our active and robust pipeline of further potential transactions.”
About European Commercial Real Estate Investment Trust
EC-REIT’s business is investment in and management of commercial properties within Europe. EC-REIT’s strategy is to aggregate a bespoke portfolio of high-quality, non-prime, core assets in key European markets designed primarily to deliver long-term, secure income with additional potential for capital appreciation.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
European Commercial Real Estate Investment Trust
Chief Executive Officer