H&R REIT Completes Strategic Sales of Office and Retail Properties

Goodmans represented H&R REIT in the sale to funds controlled by Oak Street Capital of 2 office properties (located in Calgary and Toronto, respectively) and 2 retail properties (located in Calgary and Kingston, respectively) for combined gross proceeds of $167.8 million.

H&R REIT will continue to manage the properties and earn the management fees payable by the tenants under their respective leases.  The Calgary office building is leased to AltaLink, L.P., the Toronto office building is leased to Bell Canada and the 2 retail properties are leased to Rona. H&R REIT has the option to repurchase one of the office properties (100 Wynford Dr., Toronto) for approximately $159.6 million in 2036 or earlier under certain circumstances, allowing H&R REIT to capture any development upside created through their continuing rezoning efforts.

The sales move H&R REIT closer to achieving its portfolio simplification strategy goals, and brought the year-to-date dispositions value to $406 million.