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TORONTO,
Nov. 29, 2012 /CNW/ - H&R Real
Estate Investment Trust (the "REIT") and H&R Finance Trust
(collectively with the REIT, "H&R") (TSX: HR.UN; HR.DB.C;
HR.DB.D; HR.DB.E) announced today that they have closed an offering
of 6,360,000 H&R stapled units (the "Stapled Units") at a price
of $23.60 per Stapled Unit, for
aggregate gross proceeds of approximately $150.1 million.
The Stapled Units were sold to a syndicate of
underwriters co-led by CIBC and RBC Capital Markets on a bought
deal basis. Following the successful sale of the initially
announced 5,300,000 Stapled Units, the underwriters exercised an
option to purchase an additional 1,060,000 Stapled Units.
The REIT will use its portion of the net
proceeds from the offering for future acquisitions and the
repayment of bank indebtedness and mortgage debt, including
mortgages totaling $69.7 million due
February 1, 2013, which currently
bear interest at 8.16% per annum. Upon repayment of these
mortgages the REIT will have an unencumbered pool of 26 income
producing properties valued at approximately $468.9 million. H&R Finance Trust will use
its portion of the net proceeds from the offering to subscribe for
additional notes to be issued by H&R REIT (U.S.) Holdings
Inc.
Forward-looking Statements
Certain statements in this news release contain
forward-looking information within the meaning of applicable
securities laws (also known as forward-looking statements)
including, in particular, H&R's expectations regarding the use
of proceeds of the offering and the description of the unencumbered
pool of mortgages. Such forward-looking statements reflect
H&R's current beliefs and are based on information currently
available to management. These statements are not guarantees of
future performance and are based on H&R's estimates and
assumptions that are subject to risks and uncertainties, including
those discussed in H&R's materials filed with the Canadian
securities regulatory authorities from time to time, which could
cause the actual results and performance of H&R to differ
materially from the forward-looking statements contained in this
news release. Those risks and uncertainties include, among other
things, risks related to: prices and market value of securities of
H&R; availability of cash for distributions; restrictions
pursuant to the terms of indebtedness; liquidity; credit risk and
tenant concentration; interest rate and other debt related risk;
tax risk; ability to access capital markets; dilution; lease
rollover risk; construction risks; currency risk; unitholder
liability; co-ownership interest in properties; competition for
real property investments; environmental matters; reliance on one
corporation for management of substantially all of the REIT's
properties and changes in legislation and indebtedness of H&R.
Material factors or assumptions that were applied in drawing a
conclusion or making an estimate set out in the forward-looking
statements include that the general economy is stable; local real
estate conditions are stable; interest rates are relatively stable;
and equity and debt markets continue to provide access to capital.
H&R cautions that this list of factors is not exhaustive.
Although the forward-looking statements contained in this news
release are based upon what H&R believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. All
forward-looking statements in this news release are qualified by
these cautionary statements. These forward-looking statements are
made as of today and H&R, except as required by applicable law,
assumes no obligation to update or revise them to reflect new
information or the occurrence of future events or
circumstances.
SOURCE H&R Real Estate Investment Trust