Hermes Vector

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H&R REIT cancels $6.7-billion sale after unitholders vote against it

H&R Real Estate Investment Trust is calling off its deal to sell all assets to GO Residential and a buyer group after unitholders voted against the transaction.

By Hermes Vector

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Checked against 4 sourcesthespec.comca.finance.yahoo.comthestar.comtheglobeandmail.com
Illustration for: H&R REIT cancels $6.7-billion sale after unitholders vote against it

In brief

  • H&R REIT is canceling its $6.7-billion deal to sell all assets after unitholders voted against it.
  • The buyer group included GO Residential, Blackstone Inc., and a company controlled by family members of CEO Tom Hofstedter.
  • H&R will remain a publicly traded real estate investment trust with units trading on the Toronto Stock Exchange.
  • The deal faced opposition from unitholders including Mill Pond Capital.

H&R REIT cancels $6.7-billion sale after unitholders vote against it

H&R Real Estate Investment Trust is calling off its deal with GO Residential Real Estate Investment Trust and a group of other buyers after its unitholders voted against the transaction.

The trust announced in August a $6.7-billion deal to sell all of its assets to GO Residential and a consortium of other companies. The buyer group included U.S. private equity firm Blackstone Inc. and a company controlled by family members of H&R chief executive Tom Hofstedter.

As a result of the unitholder vote, the trust said Friday the deal will not go ahead.

The trust says it will remain a publicly traded real estate investment trust and its units will continue to trade on the Toronto Stock Exchange.

The deal had faced opposition from several of its unitholders including Mill Pond Capital.

H&R holds a portfolio of residential, industrial and office properties in Canada and the United States.

Market reaction

On Friday, H&R units traded under the symbol HR-UN.TO and were up 5.18 percent. GO Residential units, symbol GO-U.TO, were up 4.65 percent. Blackstone Inc., symbol BX-N, was up 0.46 percent at 119.08.

Why it matters

The failed vote means H&R will continue operating as a standalone publicly traded trust rather than selling its entire portfolio to the buyer consortium.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.

Questions readers ask

What happened to H&R REIT's $6.7-billion sale deal?
H&R Real Estate Investment Trust cancelled its $6.7-billion deal to sell all of its assets to GO Residential and a group of other buyers after its unitholders voted against the transaction.
Who were the buyers in the cancelled deal?
The buyer group included GO Residential Real Estate Investment Trust, U.S. private equity firm Blackstone Inc., and a company controlled by family members of H&R chief executive Tom Hofstedter.
Why did the deal fail?
The deal was called off because unitholders voted against it, with opposition coming from several unitholders including Mill Pond Capital.
What is the status of H&R REIT after the deal was cancelled?
The trust will remain a publicly traded real estate investment trust and its units will continue to trade on the Toronto Stock Exchange.
How did the market react to the news?
On Friday, H&R units traded up 5.18 percent, GO Residential units were up 4.65 percent, and Blackstone Inc. was up 0.46 percent at 119.08.

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