TORONTO, Dec. 3, 2014 /CNW/ - H&R Real Estate
Investment Trust ("H&R") (TSX: HR.UN; HR.DB.D; HR.DB.E
and HR.DB.H) announced today that it has entered into agreements to
sell to an affiliate of the Public Sector Pension Investment
Board ("PSP Investments") and affiliates of Crestpoint
Real Estate Investments Ltd. ("Crestpoint") a 50% interest
in a portfolio of Canadian industrial properties and a 49.5%
interest in a portfolio of U.S. industrial properties (collectively
the "Portfolio") for a total purchase price of approximately
C$731 million. H&R will
remain the property manager and collect industry standard
fees. The Portfolio consists of a total of 101 properties
comprising approximately 19.5 million sq. ft. of industrial space
located in Canada and in the
United States. The sale transactions are expected to close in
two tranches, in December 2014 and in
February 2015, subject to customary
closing conditions.
"The combined financial strength and expertise of this new joint
venture, which builds on our successful relationship with
Crestpoint, permits us to leverage our management expertise in this
important asset class and facilitate our growth in the fast
recovering industrial sector", commented Thomas Hofstedter, President and Chief Executive
Officer of H&R REIT."
"We are very enthusiastic about this opportunity to invest in an
industrial portfolio of this quality and further expanding our
relationships with H&R and PSP Investments. The industrial
sector in both the United States
and Canada is performing well and
our companies' combined strengths will enable us to further expand
our footprint in those markets," said Kevin
Leon, President of Crestpoint.
Additional details regarding the sale of the interests in the
Portfolio and the co-ownership arrangement is contained in the
Material Change Report of H&R which will be filed publicly
today at www.sedar.com.
CIBC World Markets Inc. acted as exclusive financial advisor to
PSP Investments and Crestpoint in connection with the above
transactions.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with a total
capitalization of approximately $12.9
billion as at September 30,
2014. H&R REIT is a fully internalized REIT and has
ownership interests in a North American portfolio of high quality
office, retail and industrial properties comprising over 55 million
square feet.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is
one of Canada's largest pension
investment managers with $99.5
billion of net assets under management as of September 30, 2014. Its highly-skilled and
dedicated team of professionals manages a diversified global
portfolio including public equities, private equity, bonds and
other fixed-income securities, real estate, infrastructure and
renewable resources. PSP Investments is a Crown corporation
established to manage employer and employee net contributions since
April 1, 2000, to the pension funds
of the federal Public Service, the Canadian Forces and the Royal
Canadian Mounted Police, and since March 1,
2007, of the Reserve Force. PSP Investments' head office is
located in Ottawa, Ontario, and
its principal business office is in Montréal, Québec. For more
information about PSP Investments, visit www.investpsp.ca.
About Crestpoint Real Estate Investments Ltd.
Crestpoint Real Estate Investments Ltd. is a commercial real
estate investment manager dedicated to providing investors with
direct access to commercial real estate assets. Crestpoint is part
of the Connor, Clark & Lunn Financial Group, a multi-boutique
asset management company that provides investment management
products and services to institutional, high net-worth and retail
clients. With offices in Vancouver, Edmonton, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Halifax, New
York and London
(England), Connor, Clark &
Lunn Financial Group and its affiliates are collectively
responsible for the management of approximately $55 billion in assets as at September 30, 2014. www.crestpoint.ca
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). These forward-looking
statements include, but are not limited to H&R's plans,
objectives, expectations and intentions, including H&R's
expectations regarding the expected closing date of the sale
transactions, the future co-ownership arrangement with PSP and
Crestpoint and other statements contained in this release that are
not historical facts. 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. 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