H&R Plans to Divest $2.6B in Assets Following Strategic Review
H&R REIT plans to sell approximately $2.6 billion in assets following a months-long review of strategic alternatives.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,WQEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE.
The move comes after the REIT’s special committee engaged:L with multiple interested parties that had initially submitted a non-binding expression of interest to acquire all of H&R’s assets. Through late winter and spring, the committee evaluated the proposals, but the prices and terms offered were deemed unacceptable.
After the REIT disclosed in July that it was exploring strategic options, additional parties came forward with interest in acquiring select assets, said H&R. A full sale process was conducted, generating several offers for specific properties but no bids for the REIT as a whole.
As a result, H&R is now negotiating individual asset sales totalling roughly $2.6 billion and expects to enter binding agreements by year-end, though the REIT cautions there is no certainty transactions will be completed. With the sale process now proceeding under management and the board, the special committee has been dissolved.
During a conference call with analysts, H&R CEO and executive chairman Thomas Hofstedter declined to identify the types of assets that the REIT intends to sell. But he said the outcome of the planned asset sale will be determined by year-end 2025.
“I’m not develop telling you that it’s going to happen or won’t happen, but the special committee is done,” said Hofstedter. “They’re closed up shop. It now is back to the board. We either execute on these deals or we don’t.”
Hofstedter said the board “has a pretty good understanding” of how the process will play out.
He said sale contracts will be signed but there is a possibility that the anticipated deals will not close.
“In this world today, in real estate, the deal is not done until it’s done. YOu know that. It’s a very tough environment out there.”
Photo: Google Street View
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