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TORONTO, Jan. 17, 2017 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB.D; and
HR.DB.H) is pleased to announce the completion of a transaction to
sell a 50% non-managing interest in two Canadian shopping centres,
specifically, Cataraqui Shopping Centre in Kingston, Ontario and Place du Royaume in
Chicoutimi, Quebec to Montez
Corporation ("Montez") for a total purchase price of approximately
$211.6 million at a capitalization
rate of 5.76% before property management fee income. The
purchaser assumed 50% of the existing mortgages and the net
proceeds to H&R REIT were approximately $81.0 million. H&R REIT, through its
wholly owned subsidiary Primaris Management Inc. ("Primaris"), will
remain the property manager and collect industry standard
fees. Cataraqui Shopping Centre is a regional enclosed
shopping centre encompassing approximately 621,000 square feet
anchored by Sears and Hudson's Bay. Place du Royaume is a
regional enclosed shopping centre encompassing approximately
603,000 square feet anchored by Walmart.
"The sale of a non-managing interest in these regional shopping
centres further expands our successful relationship with Montez
Corporation allowing us to leverage our management expertise while
redeploying capital for accretive development opportunities within
our portfolio," said Patrick
Sullivan, Chief Operating Officer of Primaris Management
Inc.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with total assets
of approximately $14.5 billion at
September 30, 2016. 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.
About Primaris Management Inc.
Primaris Management Inc. is a wholly owned subsidiary of H&R
REIT managing over 10 million square feet of commercial property
including 17 regional enclosed shopping centres.
About Montez
Montez Corporation, incorporated in 2002, is a diversified
investment organization specializing in pension fund real estate
investment management with properties in the shopping centre,
office and industrial categories.
Forward-looking Statements
Certain information in this news release contains
forward-looking information within the meaning of applicable
securities laws (also known as forward-looking statements)
including, among others, statements relating to the expansion of
H&R REIT's relationship with Montez and the redeployment of
capital, the objectives of H&R REIT, strategies to achieve
those objectives, H&R REIT's beliefs, plans, estimates, and
intentions, and similar statements concerning anticipated future
events, results, circumstances, performance or expectations that
are not historical facts. Forward-looking statements generally can
be identified by words such as "outlook", "objective", "may",
"will", "expect", "intend", "estimate", "anticipate", "believe",
"should", "plans", "project", "budget" or "continue" or similar
expressions suggesting future outcomes or events. 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 risk 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 statement contained in this news release. 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 those 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.
Additional information regarding H&R REIT and H&R
Finance Trust is available at http://www.hr-reit.com and on
www.sedar.com.
SOURCE H&R Real Estate Investment Trust