H&R Real Estate Investment Trust to Be Acquired by GO Residential REIT in $6.7 Billion Deal

📅 2 weeks ago

H&R Real Estate Investment Trust announces its acquisition by GO Residential REIT in a significant transaction valued at $6.7 billion, merging its residential assets and shaping the future of the real estate investment landscape.

H&R Real Estate Investment Trust has announced a major acquisition deal valued at $6.7 billion, which will integrate its residential portfolio with GO Residential Real Estate Investment Trust. The announcement was made on Tuesday, detailing the terms of the transaction that will see H&R unitholders receiving $4.28 in cash for each unit, alongside 0.5688 units of GO REIT, effectively valuing each H&R unit at $12.01. This represents a premium of 14.5% over H&R's closing share price on June 10, the last day before speculation regarding negotiations with Blackstone emerged.
The consortium behind the acquisition includes GO REIT, alongside prominent investors such as Blackstone Real Estate, Crestpoint Real Estate Investments, PSP Investments, and CRAL, which is controlled by Tom Hofstedter, the Executive Chairman and CEO of H&R. Under the terms of the deal, GO REIT will acquire H&R's portfolio of 23 Lantower residential properties along with additional assets, while other members of the buyer group will focus on Canadian industrial properties, acquiring these for cash. CRAL will take over H&R's remaining non-core assets.
Post-acquisition, GO REIT will hold a total of 35 residential properties, comprising over 13,300 suites spread across eight markets in four states. Following the merger, H&R unitholders will collectively own approximately 66.9% of the newly formed entity, with two trustees nominated by H&R expected to join the board of GO REIT.
“Through this transaction, unitholders will receive immediate cash and GO REIT unit consideration at a considerable premium, positioning them as major stakeholders in a more robust, dedicated residential platform that offers significant upside potential,” stated Stephen Gross, H&R’s Independent Lead Trustee, in a press release.
The board of H&R has unanimously recommended that unitholders approve the acquisition at a special meeting scheduled for October. The closing of the transaction is anticipated in the fourth quarter of 2026, subject to the necessary approvals from unitholders, courts, and regulatory bodies.

Related Posts