TORONTO,
Dec. 21, 2015 /CNW/ - H&R
Real Estate Investment Trust ("H&R REIT") (TSX: HR.UN;
HR.DB.D; HR.DB.E; HR.DB.H) announced today that it has entered into
a new senior unsecured revolving credit facility for $500 million with a syndicate of lenders led by
Canadian Imperial Bank of Commerce, and including Bank of
Montreal and The Toronto-Dominion
Bank, maturing December 18,
2018. H&R REIT has covenanted to maintain an adjusted
unencumbered asset coverage of 1.4 times total unsecured
indebtedness. This replaces the previous $300 million secured general operating line
maturing on December 31, 2016.
H&R REIT, through its wholly-owned Primaris
subsidiary, PRR Trust, has also amended its senior secured credit
facility with The Bank of Nova
Scotia by increasing the line from $200 million to $300 million, extending the
maturity date to December 18, 2017
and adding H&R REIT's indirect 50% ownership interests in two
additional shopping centre properties to the security package in
favour of the lender.
In addition, H&R REIT, through its
wholly-owned subsidiary, H&R REIT (U.S.) Holdings Inc. and
together with its partners, have secured a U.S.$640 million construction financing for the
residential rental project in Long Island
City, New York. The construction financing was arranged
through a syndicate of lenders co-led by Bank of America and Wells
Fargo Bank and will be made available upon satisfaction of certain
conditions, including a further equity investment of
U.S.$64.4 million by H&R REIT
(U.S.) Holdings Inc.
About H&R REIT
H&R REIT is Canada's largest diversified real estate
investment trust with total assets of approximately $13.8 billion as at September 30, 2015. H&R REIT is a fully
internalized real estate investment trust and has ownership
interests in a North American portfolio of high quality office,
retail, industrial and residential properties comprising over 46
million square feet.
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
REIT's plans, objectives, expectations and intentions, including
H&R REIT's expectations regarding future developments in
connection with the Long Island
City project and other statements contained in this release
that are not historical facts. Such forward-looking statements
reflect H&R REIT'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 REIT's
estimates and assumptions that are subject to risks and
uncertainties, including those discussed in H&R REIT's
materials filed with the Canadian securities regulatory authorities
from time to time, which could cause the actual results and
performance of H&R REIT 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 REIT 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 REIT 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 REIT, 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