H&R REIT to be acquired in C$6.7 billion transaction
On August 11, 2026, H&R Real Estate Investment Trust ("H&R") announced that it entered into an arrangement agreement with GO Residential Real Estate Investment Trust ("GO REIT") and 1001700058 Ontario Inc. (the "Purchaser"), on behalf of a consortium of co-purchasers (which includes funds affiliated with Blackstone Real Estate ("Blackstone"), Crestpoint Real Estate Investments Ltd. ("Crestpoint"), the Public Sector Pension Investment Board ("PSP Investments") and a company controlled by members of the family of Tom Hofstedter, Executive Chairman and Chief Executive Officer of H&R ("CRAL", collectively, the "Asset Purchasers"), pursuant to which GO REIT and the Purchaser (on behalf of the Asset Purchasers) agreed to 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.
Under the terms of the arrangement agreement, H&R unitholders will receive C$4.28 per unit in cash plus 0.5688 GO REIT units per H&R unit, representing a value of C$12.01 per H&R unit based on the closing unit price of GO REIT on the Toronto Stock Exchange ("TSX") and a prevailing Canadian/U.S. dollar exchange rate of 1.3942 on August 10, 2026.
As part of the transaction
- GO REIT will acquire the following, in consideration for GO REIT units, the assumption of H&R's Series S and Series T unsecured debentures with an aggregate principal amount of C$550 million and associated property-level debt of approximately US$1.1 billion,
- H&R's 23 Lantower residential properties across three Sunbelt states
- 50% interest in the Jackson Park luxury high-rise apartment complex in New York;
- the Gotham Centre Class A office building in New York;
- 50% interest in the River Landing mixed use asset in Miami; and
- Lantower's head office building in Dallas
- Blackstone will acquire certain of H&R's Canadian industrial properties for cash;
- Crestpoint and PSP Investments will acquire certain of H&R's Canadian industrial properties in which they hold an existing co-ownership interest, for cash; and
- CRAL will acquire H&R's remaining non-core assets for cash, together with the redemption or cancellation of certain units held by CRAL and its joint actors, in each case subject to customary closing conditions. Among other things, CRAL will also commit to providing cost support and income support payments to GO REIT subsidiaries and assume certain contingent liabilities.
Expected to close in the fourth quarter of 2026 (subject to approval of the Alberta Court of King's Bench, specific unitholder approvals, clearances under the Competition Act (Canada), and other customary closing conditions), the transaction concludes H&R's multi-year strategy to simplify its portfolio and focus on high-quality residential assets, delivers immediate cash and GO REIT unit consideration at a premium, and provides H&R unitholders with a 66.9% ownership stake in GO REIT on a pro forma basis. The Board of Trustees of H&R (with interested trustees abstaining) unanimously recommend that unitholders vote in favour of the transaction at a special meeting of unitholders expected to be held in October 2026.
Further information can be found on Canada Newswire’s website.
H&R is one of Canada's largest real estate investment trusts. It has ownership interests in a Canadian and U.S. portfolio primarily comprised of high-quality residential (operating as Lantower Residential), industrial and office properties totaling approximately 21.2 million square feet.
GO REIT is an internally managed, open ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. It was formed to provide investors with an opportunity to invest in luxury high-rise multifamily properties located in the New York metropolitan area and other major metropolitan cities in the United States.
Blackstone Real Estate is a global leader in real estate investing, with US$314 billion of investor capital under management. It is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, data centers, residential, office and hospitality.
Crestpoint Real Estate Investments focuses on commercial real estate and debt investments, and collectively manages approximately $14 billion on behalf of institutional and high-net-worth clients and is a rapidly growing real estate investment and asset manager across Canada. Crestpoint is an affiliate of Connor, Clark & Lunn Financial Group Ltd., a multi-boutique asset management firm whose affiliates collectively manage over C$222 billion in assets for individuals, advisors and institutional investors.
PSP Investments is one of Canada's largest pension investors with C$320.6 billion of net assets under management as of March 31, 2026. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments.