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H&R REIT and its Property Manager Agree to Fee Waiver for Primaris Transaction
DBRS CONFIRMS H&R REIT SENIOR UNSECURED DEBENTURE RATING TORONTO, Jan. 24, 2013 /...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\n\nDBRS CONFIRMS H&R REIT SENIOR UNSECURED DEBENTURE RATING\n\n\nTORONTO, Jan. 24, 2013 /CNW/ - H&R Real Estate Investment Trust (TSX:\n HR.UN) (\"H&R REIT\") is pleased to announce that, in connection with its\n agreement to acquire Primaris Retail Real Estate Investment Trust\n (\"Primaris\"), H&R REIT and its property manager have agreed to the\n following changes to the current omnibus property management agreement\n between the parties:\n\n\nthe property manager has waived, in whole, its entitlement to the\n acquisition fee that would otherwise be payable upon completion of the\n acquisition;\n\n\nthe property manager has confirmed that no property management fees\n relating to the Primaris properties will be payable to the property\n manager as it is expected that the Primaris properties will be\n internally managed by the existing Primaris management team; and\n\n\nthe property manager has further agreed with H&R REIT that, following\n H&R REIT's acquisition of Primaris, no acquisition fees or property\n management fees will be payable to the property manager by H&R REIT in\n connection with the future acquisition by H&R REIT of enclosed shopping\n centers in Canada.\n\n\nH&R REIT is also pleased to announce that DBRS Limited has completed its\n review of the Primaris transaction and confirmed on January 17, 2013\n that H&R REIT's senior unsecured debentures remain rated at BBB with a\n stable trend.\n\n\nThe Primaris transaction provides H&R REIT unitholders with the\n following benefits:\n\n\nHigh-Quality Portfolio of Scarce Retail Assets: The transaction is a unique opportunity to acquire a professional\n retail platform, with an irreplaceable Canadian enclosed shopping\n centre portfolio.\n\n\nIncreased Scale: The transaction creates the largest REIT in Canada by enterprise\n value. The increased scale will provide more stability in volatile\n markets and further improve H&R's cost of capital.  In addition, the\n increased market capitalization will result in substantially enhanced\n liquidity for unitholders.\n\n\nImproved Portfolio Diversification: The addition of Primaris' retail properties will broaden H&R REIT's\n portfolio diversification geographically, by asset class and by tenant\n base.\n\n\nStrong Financial Metrics: The REIT's balance sheet w...