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H&R REIT closes previously announced sale of The Atrium
H&R REIT closes previously announced sale of The Atrium H&R REIT closes pr...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nH&R REIT closes previously announced sale of The Atrium\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nH&R REIT closes previously announced sale of The Atrium\nCanada NewsWire\nTORONTO, June 6, 2019\n\n\n\nTORONTO, June 6, 2019 /CNW/ - H&R Real Estate Investment Trust (\"H&R\") (TSX: HR.UN) is pleased to announce that it has closed the sale of The Atrium for $640 million.  The sale price equates to a 4.56% capitalization rate on the next twelve months forecasted property operating income.  \nThe Atrium sale demonstrates H&R's commitment to its industry-leading balance sheet and BBB+ credit rating, as well as the capital discipline to prioritize investment opportunities and recycle capital.  At March 31, 2019, H&R had $536.8 million of properties under development, and multiple additional higher-return development, redevelopment and intensification opportunities embedded in its portfolio.\nH&R purchased The Atrium for $344.8 million in 2011 and since the acquisition, has increased annual net operating income by $6.5 million, creating substantial value for unitholders.  The Atrium's IFRS value as at March 31, 2019 was $600 million.  The sale price for The Atrium was approximately $295 million higher than its original purchase price and management expects to record a gain of approximately $40 million, before closing costs, relative to its IFRS value. \nThe Atrium was unencumbered at the time of the sale.  H&R has provided the purchaser with a vendor take-back (VTB) mortgage of $256 million, bearing interest at an annual rate of 4.56% and maturing on January 2, 2020.  H&R intends to use the proceeds to repay approximately $230 million of debt outstanding under its revolving credit facilities and also repay the Series M debentures, totalling $150 million, when the debentures mature on July 23, 2019.  \nAbout H&R REIT \nH&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $14.5 billion at March 31, 2019.  H&R REIT has ownership i...