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H&R REIT shareholders plan votes to block $4.8B breakup deal

RBC Global Asset Management holds 9.3 million H&R REIT units and plans to vote against the transaction, following Mill Pond Capital's plan to reject it.

Reported · Written up by our desk · REITs

Two major H&R REIT shareholders said they plan to vote against the company’s planned $4.8 billion breakup deal, which would sell the REIT’s 107 assets to a group of buyers that includes Blackstone Real Estate and PSP Investments, according to Bisnow.

Bisnow reports that RBC Global Asset Management, which holds 9.3 million units, told Bloomberg it will vote against the deal, while Mill Pond Capital, which holds 2.2 million units, also said it would reject the transaction.

Bisnow adds that Mill Pond published a five-point letter outlining its concerns, including an allegation that the proposed structure would benefit CEO Tom Hofstedter at the expense of other shareholders.

Bisnow also notes that H&R REIT signed the deal in August, after sale talks were disclosed in June, and that the REIT’s asset count had fallen to 107 at the end of the second quarter from 365 a year earlier.

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