Business
H&R acquires a U.S. retail platform and enters into an agreement for the sale of a 50% non-managing interest in Place d'Orleans
TORONTO , Aug. 7, 2013 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT") (TS...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\nTORONTO, Aug. 7, 2013 /CNW/ - H&R Real Estate Investment Trust (\"H&R\n REIT\") (TSX: HR.UN; HR.DB.D; HR.DB.E; HR.DB.H) is pleased to announce\n that it has acquired a one-third interest in ECHO Realty LP (\"ECHO\"). \n ECHO will be accounted for as an equity investment and will be\n immediately accretive on a Funds from Operations (\"FFO\") and Adjusted\n Funds from Operations (\"AFFO\") basis.  In accordance with the\n management internalization announced last week, there will be no\n external acquisition or property management fees payable on this\n transaction.\n\n\nSince the formation of ECHO in March 2000, ECHO has focused on two\n primary areas of business: (i) developing and owning a core portfolio\n of real estate, tenanted by Giant Eagle, Inc. (\"Giant Eagle\"), the\n leading grocer in the western Pennsylvania and eastern Ohio regions\n operating under the Giant Eagle, Market District, GetGo and Good Cents\n banners; and (ii) developing and selling shopping centres anchored by\n other large national retailers throughout the Eastern United States. \n ECHO is the largest landlord for Giant Eagle.\n\n\nECHO's portfolio consists of 176 properties, totaling approximately 7.4\n million square feet and is expected to generate in excess of $84\n million in net operating income annually with an average remaining\n lease term of 12.9 years.  ECHO's portfolio is comprised of five\n property types: 160 retail assets, four office buildings, six\n industrial properties, four retail development projects, and two land\n parcels.\n\n\nGiant Eagle is a tenant in 161 of the properties and contributes\n approximately 79% to ECHO's total annual revenue.  Giant Eagle had\n revenue of $9.9 billion for their fiscal year ended June 2012 and has a\n mortgage bond rating of NAIC 2. The average annual sales per square\n foot of the Giant Eagle supermarkets in ECHO's portfolio is in excess\n of $600 per square foot.\n\n\nThe portfolio value amounts to approximately $1.165 billion at a\n weighted average cap rate of 7.3%.  The portfolio has first mortgages\n totalling $410 million with an average remaining term of 10 years at an\n average annual interest rate of 6.1%.  H&R will acquire limited\n partnership units from treasury in consideration for a total purchase\n price of approximately $294 mi...