Business
H&R Real Estate Investment Trust Announces Acquisition of Peter Pond Mall, Fort McMurray, Alberta and $300 million Financing in Series C Bonds Secured by the Bow
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES./ T...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE\n SERVICES./\n\n\nTORONTO, June 6, 2013 /CNW/ - H&R Real Estate Investment Trust (TSX:\n HR.UN; HR.DB.C; HR.DB.D; HR.DB.E and HR.DB.H) (\"H&R REIT\") announced\n that, through its Primaris retail division, it has entered into an\n agreement to purchase Peter Pond Mall in Fort McMurray, Alberta for\n $168.5 million and has arranged a third series of first mortgage bonds\n totaling $300 Million secured by The Bow.\n\n\nDetails of Peter Pond Acquisition\n\n\nH&R REIT will acquire a 100% interest in Peter Pond Mall to be\n internally managed by Primaris. The purchase price represents a\n capitalization rate of approximately 6.30% (before property management\n fee income). Closing of the acquisition is scheduled to occur on July\n 3, 2013.  As previously announced, no acquisition or external property\n management fees will be payable on this transaction.\n\n\nCommenting on the acquisition, Primaris' Chief Operating Officer,\n Patrick Sullivan, noted, \"Peter Pond is the dominant Centre in Northern\n Alberta, servicing the vibrant and growing Fort McMurray community;\n home to the thriving oil sands industry which enjoys an average\n household income in excess of $190,000 per annum.  Peter Pond is the\n leading enclosed mall in this region producing average mall sales in\n excess of $870 per square foot and is reported to rank in the top 10 of\n all Shopping Centres in Canada when measured on a sales per square foot\n basis. This acquisition is a perfect fit with our existing portfolio of\n market dominant centres throughout Canada\".\n\n\nDetails of the $300 Million Financing \n\n\nConsistent with H&R's strategy to secure long-term fixed rate financing,\n H&R, through its wholly owned entity Bow Centre Street Limited\n Partnership (the \"Issuer\"), has arranged, on a private placement basis,\n a third series of first mortgage bonds totaling $300 Million secured by\n The Bow, Calgary, Alberta.\n\n\nThe Series C Bonds are comprised of $300 million, 10 year term,\n semi-annual interest only bonds bearing interest at a rate of 3.797%\n and maturing on June 13, 2023.  H&R intends to utilize the proceeds\n from the Bonds to repay indebtedness and for its acquisition of Peter\n Pond Mall.  The Series C Bonds have achieved ...