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GO Residential leads $4.8B deal to buy H&R REIT assets
The transaction is valued at about $4.8B, or 6.7B Canadian dollars, including assumption of certain debt, with investors set to receive cash plus GO units.
H&R REIT is set to be acquired in a cash and unit transaction led by GO Residential REIT, with a consortium including Blackstone Real Estate, Crestpoint Real Estate Investments, PSP Investments, and a company controlled by the family of H&R CEO Tom Hofstedter, according to Bisnow.
The deal is valued at about $4.8B, or 6.7B Canadian dollars, including assumption of certain debt. Under the agreement, GO Residential REIT will acquire 27 properties and expand its portfolio fourfold.
H&R said it owned about $5.8B of assets at the end of March, with residential assets making up 60% and industrial accounting for 25%. Blackstone, PSP, and Crestpoint will acquire H&R’s Canadian industrial properties, including 66 industrial properties totaling 8.3M SF.
GO Residential REIT will receive a 27-property portfolio that includes 23 Sun Belt residential properties, a 50% interest in a mixed-use Miami property, a New York office tower, and a mixed-use office asset in Dallas. H&R investors will receive CA$4.28 in cash plus 0.57 GO REIT units for each unit, and GO said the transaction brings its portfolio to 35 properties across eight U.S. markets.