H&R Unitholders Reject $6.7B Breakup Of 20M-SF Portfolio
A more than 20M-SF portfolio spanning Canadian warehouses, offices and U.S. apartments will stay under H&R REIT’s control after unitholders voted down a $6.7B breakup Friday. The Toronto-based landlord may now sell its industrial properties separately.
H&R terminated the agreement immediately. The REIT will stay listed on the Toronto Stock Exchange and owes the buyers no breakup fee.
The August deal capped a multiyear review. GO Residential REIT was to acquire 27 properties, including H&R’s U.S. apartments. Blackstone, Crestpoint and PSP Investments were lined up for Canadian industrial properties. A company controlled by CEO Tom Hofstedter’s family was to buy other assets.
Opposition grew in October as investors questioned how property sale proceeds would be allocated. The offer was initially worth $12.01 per H&R unit. Its value fell as GO’s units declined, and Institutional Shareholder Services urged unitholders to reject the deal.
“We appreciate their views and respect the outcome of today’s vote,” said Stephen Gross, H&R’s independent lead trustee.
H&R reinstated its five-cent monthly distribution and will make up three missed payments in December. It aims to declare a special cash distribution of about $2.30 per unit before year-end, subject to lender approval. The board plans to replace up to four trustees by year-end and begin planning for Hofstedter’s successor.
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Remax Real Estate Professionals
Re/Max Real Estate Professionals
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Jared Ennis
Central CA Commercial | California
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Rick Recckio
Recckio Real Estate & Development
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Greg Corbin
Northgate Real Estate Group
Lenders
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Essex Property Trust, Inc.
California
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Josh A
California
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Bob Tuteur
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Andrew Schildcrout