TORONTO, Oct. 12, 2021 /CNW/ - H&R REIT ("H&R" or the "REIT") (TSX: HR.UN) is pleased to announce that it has closed the transactions previously announced August 3, 2021 involving the 2.0 million sq.ft. Bow office tower located in Calgary, Alberta, and the sale of the 1.1 million sq.ft. Bell office campus (the "Bell Campus") located in Mississauga, Ontario, for combined gross proceeds of approximately $1.47 billion.
As part of the transaction, the REIT has issued notices of redemption for the Bow Centre Street Limited Partnership Series B and Series C Secured Bonds for a combined redemption amount of $524 million, inclusive of pre-payment penalties, to be redeemed on October 18th, 2021. The REIT has also repaid $25 million of mortgages secured by the Bell Campus, inclusive of pre-payment penalties, while another $97 million of associated mortgage debt was assumed by the buyer.
Net proceeds after the above noted debt repayments, assumptions and associated transaction costs, are approximately $800 million which will be used to pay down debt.
H&R intends to redeem all of its outstanding 2.923% Series L Senior Unsecured Debentures due May 6, 2022 (the "Series L Debentures") in an aggregate principal amount of $325 million pursuant to and subject to the terms of its trust indenture dated February 3, 2010, as supplemented by the tenth supplemental trust indenture dated November 7, 2016 (collectively, the "Indenture").
The Series L Debentures will be redeemed as at the redemption date (expected to be in mid-November 2021) upon payment by H&R of a redemption amount equal to the Canada Yield Price (as defined in the Indenture), together with accrued and unpaid interest to but excluding the redemption date, less any applicable withholding taxes.
Notice of the redemption will be delivered to the trustee, BNY Trust Company of Canada and to the Canadian Depository for Securities Limited as holder of the Series L Debentures in accordance with the terms of the Indenture.
Thomas Hofstedter, President & CEO of H&R REIT said "We are pleased to conclude this transformational transaction, which along with further strategic initiatives management expects to announce in the near future, form the basis for a significant repositioning of H&R REIT."
Monthly Distribution Declared
H&R today declared a distribution for the month of October scheduled as follows:
October 22, 2021
November 5, 2021
Conference Call and Webcast
Management will host a conference call to discuss the financial results for H&R REIT on Friday, November 12, 2021 at 9.30 a.m. Eastern Time. Participants can join the call by dialing 1-888-510-2507 or 1-289-514-5065. For those unable to participate in the conference call at the scheduled time, it will be archived for replay beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-647-362-9199 or 1-800-770-2030 and enter the passcode 3504623 followed by the pound key. The telephone replay will be available until Friday, November 19, 2021 at midnight.
A live audio webcast will be available through https://www.hr-reit.com/investor-relations/#investor-events. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on H&R's website following the call date.
About H&R REIT
H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $13.1 billion at June 30, 2021. H&R REIT has ownership interests in a North American portfolio of high-quality office, retail, industrial and residential properties comprising over 40 million square feet.
Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements). These forward-looking statements include, but are not limited to H&R's plans, objectives, expectations and intentions, including the net proceeds of the transactions and the uses thereof, the redemption of the Bow Centre Street Limited Partnership Series B and Series C Secured Bonds, the timing for redemption of the Series L Debentures, the potential for more strategic changes, and the payment of distributions. Such forward-looking statements reflect H&R's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks and uncertainties, including those discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of H&R to differ materially from the forward-looking statements contained in this news release. Although the forward-looking statements contained in this news release are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as of today and H&R, except as required by applicable law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances.
SOURCE H&R Real Estate Investment Trust
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