TORONTO, Feb. 14, 2020 /CNW/ - 1832 Asset Management L.P. ("1832") is reporting today historical transactions made by it, on behalf of certain investment funds it manages, of trust units (the "Units") of European Residential Real Estate Investment Trust (the "REIT"). The head office of the REIT is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1. A report with respect to these transactions was not previously filed.
On September 24, 2019, the REIT completed a prospectus offering of 40,185,000 Units (the "September Offering"). As part of the September Offering, 1832 acquired, on behalf of investment funds managed by it, 11,500,000 Units, resulting in 1832 holding approximately 22.80% of the issued and outstanding Units (the "First Reportable Event"). These Units were acquired for $47,725,000.00 in total, at a price of $4.15 per Unit.
Immediately before the First Reportable Event, 1832 held 1,614,627 Units, representing approximately 9.31% of the issued and outstanding Units. Immediately after the First Reportable Event, 1832 held 13,114,627 Units, representing approximately 22.80% of the issued and outstanding Units. The Units acquired as a result of the First Reportable Event represented an approximate increase of 13.49% in 1832's holdings of Units.
Between September 25, 2019 and November 5, 2019 (the "Interim Period"), 1832 acquired, on behalf of investment funds managed by it, an aggregate of 997,154 Units, of which 963,350 Units were acquired on the TSX Venture Exchange (the "TSXV") and 33,804 Units were acquired through the REIT's distribution reinvestment plan. These Units were acquired for $4,539,683.67 in total, at prices ranging from $4.30 to $4.77 per Unit. The Units acquired during the Interim Period represented an approximate increase of 1.73% in 1832's holdings of Units since the First Reportable Event.
On November 6, 2019, 1832 acquired, on behalf of investment funds managed by it, 293,700 Units over the facilities of the TSXV, resulting in 1832 holding approximately 25.03% of the issued and outstanding Units (the "Second Reportable Event"). These Units were acquired for $1,409,760.00 in total, at a price of $4.80 per Unit.
Immediately before the Second Reportable Event, 1832 held 14,111,781 Units, representing approximately 24.52% of the issued and outstanding Units. Immediately after the Second Reportable Event, 1832 held 14,405,481 Units, representing approximately 25.03% of the issued and outstanding Units. The Units acquired as a result of the Second Reportable Event represented, together with the 997,154 Units acquired by 1832 during the Interim Period, an approximate increase of 2.24% in 1832's holdings of the Units since the First Reportable Event.
On November 8, 2019, 1832 made one further acquisition of 15,000 Units on the TSXV and, since that date, has held 14,420,481 Units. On December 18, 2019, the REIT completed a prospectus offering of 30,915,400 Units (the "December Offering"), which reduced the percentage of Units held by 1832. Immediately before the December Offering, 1832 held approximately 25.06% of the issued and outstanding Units and, immediately after the December Offering, approximately 16.30% of the issued and outstanding Units. It is the understanding of 1832 that, immediately before the December Offering, 1832's ownership represented approximately 7.23% of the issued and outstanding voting securities of the REIT—which includes the Units as well as class B limited partnership units (the "Class B LP Units") of ERES Limited Partnership, a subsidiary of the REIT—and, immediately after the December Offering, approximately 6.26% of the issued and outstanding voting securities of the REIT. The Class B LP Units are exchangeable for, and intended to be the economic equivalent of, the Units, and are accompanied by special voting units that represent voting rights in the REIT.
1832 acquired the Units for investment purposes, on behalf of the investment funds managed by it, and not in order to exercise control or direction over the REIT. 1832 may in the future acquire additional Units or sell Units depending on market conditions or other relevant factors.
An early warning report with respect to the transactions above will be filed today on the REIT's SEDAR profile at www.sedar.com, and may also be obtained by contacting 1832.
About 1832 Asset Management
1832 Asset Management offers a range of wealth management solutions, including mutual funds, and investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management is a limited partnership organized under the laws of Ontario, the general partner of which is wholly owned by Scotiabank.
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