H&R REIT to be Acquired in C$6.7 Billion Transaction

H&R Real Estate Investment Trust announced today that it entered into an agreement with GO Residential Real Estate Investment Trust (GO REIT) and 1001700058 Ontario Inc., on behalf of a consortium of co-purchasers that includes funds affiliated with Blackstone Real Estate, Crestpoint Real Estate Investments Ltd., the Public Sector Pension Investment Board and a company controlled by members of the family of Tom Hofstedter, Executive Chairman and Chief Executive Officer of H&R (the Purchaser). Pursuant to the agreement, GO REIT and the Purchaser will acquire all of the assets of H&R by way of a court-approved plan of arrangement under the Business Corporations Act (Alberta) in a cash and unit transaction valued at approximately C$6.7 billion, including the assumption of certain debt.

The transaction represents one of the largest Canadian real estate transactions announced in recent years and will create a leading North American residential REIT platform. Upon closing, GO REIT is expected to own 35 residential properties comprising more than 13,300 suites across key US markets, including New York City and high-growth Sunbelt regions, and is expected to become the second-largest residential REIT on the Toronto Stock Exchange by enterprise value.

Bennett Jones acted as legal counsel to the Purchaser and CRAL, an affiliate of H&R's Executive Chairman and Chief Executive Officer in connection with the transaction, with a team led by Riley Whitlock and Kristopher R. Hanc and including Luke Stretch and Troy Mack (Commercial Real Estate), Yohanna Laurensia, Asif Zalfackruddin and Jennifer Huang (M&A), Philip B. Ward and Kate Kim (Tax) and Adam Kalbfleisch and Kolding Larson (Competition & Antitrust).

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