CAPREIT is accomplishing a reverse takeover of European Commercial REIT through an asset sale

European Commercial REIT (the “REIT”) is substantially expanding its size by purchasing a Netherlands subsidiary (“BV”) of CAPREIT (holding a portfolio of Netherlands rental residential properties) in consideration for having a subsidiary LP of the REIT issue exchangeable units to CAPREIT. As a result of this transaction, CAPREIT will hold over 80% of the consolidated equity of the REIT in the form of the exchangeable units, so that the transaction thus is akin to a reverse takeover of the REIT.

Nelal Armstrong. Summary of European Commercial REIT Circular under Other - Asset Purchases.