TORONTO, April 3, 2024 /CNW/ - H&R Real Estate
Investment Trust ("H&R" or the "REIT") (TSX: HR.UN) today
announced that the previously announced initial public offering
("IPO") of Lantower Residential Real Estate Development Trust (No.
1) (the "REDT") was successfully completed, raising the maximum
amount of US$52 million.
The REDT was formed to partner with H&R's subsidiary
Lantower Residential on two residential development projects
in Florida (the "Projects")
expected to contain an aggregate of 601 units comprised as
follows:
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(i)
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a project to develop
multifamily residential rental buildings comprising 271 residential
rental units sitting on 8.4 acres of land in Largo, Florida
(Tampa); and
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(ii)
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a project to develop
multifamily residential rental buildings comprising an aggregate of
330 residential rental units on 17.2 acres of land
in Kissimmee, Florida (Orlando).
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Development of the Projects is expected to commence
shortly, with total budgeted costs for the Projects of
approximately US$210 million.
Construction is expected to be completed and lease-up is expected
to commence in Q1 2026 for the Largo,
Florida project and Q2 2026 for the Kissimmee, Florida project
Immediately following closing of the Offering, the REDT
indirectly acquired an approximate 70.9% interest in the Projects,
with H&R retaining an approximate 29.1% ownership interest in
the Projects through Lantower Residential. The REDT and the Project
are managed by affiliates of H&R.
H&R retains an option to acquire the Projects. The
transaction is expected to lower cash flow requirements and
leverage impact for the two development projects on H&R.
CIBC World Markets Inc. was the sole agent for the IPO.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities of the Trust in
the United States, nor shall there
be any sale of the securities of the Trust in any jurisdiction in
which such offer, solicitation or sale would be unlawful. The
securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), and may not be offered or sold within
the United States unless
registered under the U.S. Securities Act and applicable state
securities laws or pursuant to exemptions from the registration
requirements of the U.S. Securities Act and applicable state
securities laws.
About H&R REIT
H&R REIT is one of Canada's
largest real estate investment trusts with total assets of
approximately $10.8 billion as at
December 31, 2023. H&R REIT has
ownership interests in a North American portfolio comprised of
high-quality residential, industrial, office and retail properties
comprising over 26.9 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.
About Lantower Residential LP
Lantower Residential, a subsidiary of H&R REIT, is a
vertically integrated multifamily real estate company based in
Dallas, Texas, focused on
acquiring, developing, financing, and managing multifamily
communities in the U.S. Lantower Residential focuses on driving
growth and maximizing value through its disciplined investment
strategy and portfolio management. Lantower Residential consists of
24 residential properties in select markets in the United States comprising 8,166 residential
rental units, at H&R REIT's ownership interest. In addition to
hosting all capacities internally (property management, operations,
accounting, human resources, marketing, asset management, etc.),
Lantower Residential has an in-house development team that has over
5,000 residential rental units in the pipeline at various stages of
development and construction.
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) 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 future plans and targets, the REIT's ability to take
advantage of value-creating opportunities, H&R's strategy to
grow its exposure to residential assets in U.S. sunbelt and gateway
cities, H&R's expectations with respect to the development of
the Projects, the timing of construction and completion, expected
construction plans and expected square footage, and estimated
development costs. 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; debt markets continue 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,
those related to: real property ownership; the current economic
environment; credit risk and tenant concentration; lease rollover
risk; interest rate and other debt-related risks; development
risks; residential rental risk; capital expenditure risk; currency
risk; liquidity risk; cyber security risk; risks associated with
disease outbreaks; financing credit risk; ESG and climate change
risk; co-ownership interest in properties; general uninsured
losses; joint arrangement and investment risks; 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; potential
conflicts of interest; REIT unit prices; availability of cash for
distributions; credit ratings; ability to access capital markets;
dilution; unitholder liability; redemption right; investment
eligibility; debentures; statutory remedies; and tax risks
applicable to the REIT and to unitholders. 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 contained in this news
release are qualified by these cautionary statements. These
forward-looking statements are made as of April 3, 2024 and the REIT, 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 REIT is available at
www.hr-reit.com and on www.sedarplus.com.
SOURCE H&R Real Estate Investment Trust