- What European Residential REIT closed two sales of residential suites and one office deal
- Why Proceeds were used to pay down debt
- What next The company will continue to work to reduce leverage and strengthen its balance sheet
European Residential REIT has closed three sales transactions in the Netherlands totaling €116m.
In June, the Toronto-based company sold 66 residential suites for approximately €14.2 million. Proceeds went toward repaying approximately €7.0 million in associated mortgage debt.
On July 15, ERES closed on the sale of 464 residential suites for approximately €100.7 million. Some of those proceeds were used to repay about €62.8 million of debt.
Also this month, the company sold an office property for roughly €1.1 million. All the net proceeds were used to pay down the associated portfolio of mortgage principal outstanding.
“These transactions have freed up capital that we can reallocate into the repayment of our higher interest credit facility debt, which will reduce our leverage, enhance our cash flows, and strengthen our balance sheet,” chief executive Mark Kenney said in a release.
