11:33 AM EDT, 09/17/2024 (MT Newswires) -- Canadian Apartment Properties Real Estate Investment Trust (CAR-UN.TO), or CAPREIT, late on Tuesday said subsidiaries of European Residential Real Estate Investment Trust (ERE-UN.TO), or ERES, agreed to sell 3,179 residential suites in the Netherlands and have closed on the disposition of one commercial building in Germany for about $1.1 billion.

CAPREIT expects a portion of the net proceeds will be used to fund a special cash distribution of an estimated $1.13 per ERES unit and ERES Limited Partnership's exchangeable class B LP unit.

Based on CAPREIT's effective 65% stake in ERES, CAPREIT expects to receive about $172 million from the special distribution.

In addition, ERES intends to reduce its monthly rate of distribution by about 50% following the completion of the residential dispositions, which is expected by the first quarter of 2025.

CAPREIT will use the proceeds from the special distribution to repay funds drawn on its revolving credit facility, fund future acquisitions of on-strategy rental properties in Canada, and for general business purposes.

ERE units were last seen up $0.23 to $3.18 on the Toronto Stock Exchange.

Price: 55.22, Change: -1.10, Percent Change: -1.95