H&R REIT selling retail properties for $810 million to focus on residential arm

TORONTO — H&R Real Estate Investment Trust says it is selling 63 U.S. retail properties for about $810 million with plans to reinvest some of the proceeds to grow its Lantower Residential division.

The sale includes all of H&R REIT’s remaining retail properties in the United States, other than 16 gas stations and convenience stores.

CEO Thomas Hofstedter says the sales will allow the Toronto-based company to streamline its focus and enhance the quality and growth profile of its portfolio.

He says H&R’s Lantower Residential division, set up three years ago to buy and manage multi-family communities in the U.S., has grown to about 15 per cent of its real estate assets today.

H&R plans to use about $264 million of the proceeds to retire mortgage debt and devote the rest to Lantower acquisitions and repurchasing units from investors under its normal course issuer bid.

In November, H&R announced plans to sell all 79 of its wholly owned U.S. retail properties.

The Canadian Press