Canada's H&R REIT agrees to $4.81 billion breakup deal with GO Residential, Blackstone consortium
The breakup gives H&R unitholders $4.28 in cash and 0.5688 GO REIT units per share, a 14.5% premium, the company said.
- On Tuesday, H&R Real Estate Investment Trust agreed to sell all assets to GO Residential Real Estate Investment Trust and a consortium including Blackstone Inc. for around $6.7 billion.
- The transaction concludes a multi-year strategy to simplify H&R's portfolio and focus on residential assets, following a decade of underperformance compared to other Canadian real estate companies.
- Investors will receive $4.28 in cash plus 0.5688 GO REIT units per unit, representing a 14.5 per cent premium to the June 10 undisturbed closing price.
- GO Residential will acquire 23 Sunbelt properties and H&R's 50 per cent stake in Jackson Park, while Blackstone, PSP, and Crestpoint Real Estate Investments acquire Canadian industrial assets.
- The deal is expected to close in the fourth quarter of this year, pending regulatory and unitholder approvals; Stephen Gross, H&R's independent lead trustee, called the review process "exhaustive.
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H&R Real Estate Investment Trust (REIT) announces on Tuesday that it has entered into an agreement to divest all of its assets to GO Residential REIT for an amount of approximately 6.7 billion, as well as to a consortium of other companies, including the US private equity company Blackstone.
Canada's H&R REIT agrees to $4.81 billion breakup deal with GO Residential, Blackstone consortium
Canada's H&R Real Estate Investment Trust said on Tuesday it had agreed to a C$6.7 billion ($4.81 billion) breakup transaction, under which GO Residential REIT will acquire its U.S. residential portfolio and a group including Blackstone, PSP Investments, Crestpoint and entities tied to Chief Executive Tom Hofstedter will buy other assets.
The Toronto Star
H&R REIT to sell assets to GO Residential, others in $6.7 billion deal
TORONTO - H&R Real Estate Investment Trust says it has agreed to sell all of its assets to GO Residential Real Estate Investment Trust for around $6.7 billion and a consortium of other companies, including U.S. private equity firm Blackstone…
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