TORONTO, Aug. 21,
2023 /CNW/ - H&R Real Estate Investment Trust
("H&R" or "the REIT") (TSX: HR.UN) is pleased to announce it is
in receipt of the remaining $170.0
million of proceeds from the $180.0
million vendor take-back mortgage that H&R provided to
Groupe Mach (the "Purchaser"), of 160 Elgin Street ("160
Elgin") at the time of the sale of
160 Elgin. The REIT intends to allocate the majority of proceeds to
repay outstanding indebtedness and fund current development
projects.
On April 20, 2023, H&R
announced the closing of the sale of 160 Elgin for $277.0 million. 160 Elgin was H&R's only
Ottawa office property, comprising
973,611 square feet in downtown Ottawa,
Ontario. This sale is consistent with the REIT's strategic
repositioning plan to surface significant value for unitholders, by
transforming into a simplified, growth-oriented company focused on
residential and industrial properties.
H&R provided the Purchaser with the $180.0 million vendor take-back mortgage secured
by a first mortgage on the property, which earned interest at 6.5%
per annum. The REIT received an initial instalment of $10.0 million on July 20,
2023 and has now received the remaining balance of
$170.0 million, resulting in
repayment in full of the mortgage. In addition, H&R provided
the Purchaser with a second vendor take-back mortgage of
$30.0 million bearing interest at
4.5% per annum, maturing April 20,
2028.
About H&R REIT
H&R REIT is one of Canada's
largest real estate investment trusts with total assets of
approximately $11.1 billion as at
June 30, 2023. H&R REIT has
ownership interests in a North American portfolio comprised of
high-quality residential, industrial, office and retail properties
comprising over 27.7 million square feet. H&R's strategy is to
create a simplified, growth-oriented business focused on
residential and industrial properties in order to create
sustainable long term value for unitholders. H&R plans to sell
its office and retail properties as market conditions permit.
H&R's target is to be a leading owner, operator and developer
of residential and industrial properties, creating value through
redevelopment and greenfield development in prime locations within
Toronto, Montreal, Vancouver, and high growth U.S. sunbelt and
gateway cities.
Forward-Looking
Disclaimer
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 H&R's
objectives, beliefs, plans, estimates, targets, projections and
intentions and similar statements concerning anticipated future
events, results, circumstances, performance or expectations that
are not historical facts including, with respect to H&R's
strategic repositioning plan, the intended sales of office and
retail properties, portfolio exposure, and the use of proceeds from
the sale of 160 Elgin, and. 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's current beliefs and
are based on information currently available to management.
Forward-looking statements are provided for the purpose of
presenting information about management's current expectations and
plans relating to the future and readers are cautioned that such
statements may not be appropriate for other purposes. These
statements are not guarantees of future performance and are based
on H&R's estimates and assumptions that are subject to risks,
uncertainties and other factors including those risks and
uncertainties discussed in H&R's materials filed with the
Canadian securities regulatory authorities from time to time, which
could cause the actual results, performance or achievements 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 assumptions relating
to the general economy, including the effects of increased
inflation; the debt markets continuing to provide access to capital
at a reasonable cost, notwithstanding rising interest rates; and
assumptions concerning currency exchange and interest rates.
Additional risks and uncertainties include, among other things,
risks related to: real property ownership; current economic
environment; credit risk and tenant concentration; lease rollover
risk; interest rates and other debt-related risks; development
risks; residential rental risk; capital expenditure risk; currency
risk; liquidity risk; risks associated with disease outbreaks;
cyber security risk; financing credit risk; ESG and climate change
risk; co-ownership interest in properties; general uninsured
losses; joint arrangements and investment risk; dependence on key
personnel and succession planning; potential acquisition,
investment and disposition opportunities and joint venture
arrangements; potential undisclosed liabilities associated with
acquisitions; competition for real property investments; and
potential conflicts of interest; unit-price risk; availability of
cash for distributions; credit ratings; ability to access capital
markets; tax risk; additional tax risks applicable to unitholders;
dilution; unitholder liability; redemption right risk; investment
eligibility; risks relating to debentures; and statutory remedies.
H&R cautions that these lists of factors, risks and
uncertainties are 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.
Readers are also urged to examine H&R's materials filed with
the Canadian securities regulatory authorities from time to time as
they may contain discussions on risks and uncertainties which could
cause the actual results and performance of H&R to differ
materially from the forward-looking statements contained in this
news release. 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 Canadian 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 is available at
www.hr-reit.com and on www.sedarplus.ca
SOURCE H&R Real Estate Investment Trust