Business
H&R REIT Completes the Acquisition of the Hess Tower in Houston
TORONTO, Dec. 22, 2011 /CNW/ - H&R Real Estate Investment Trust (the "REIT") is plea...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\n\n\n\n\nTORONTO, Dec. 22, 2011 /CNW/ - H&R Real Estate Investment Trust (the\n \"REIT\") is pleased to announce that it has completed the previously\n announced acquisition of the Hess Tower. This recently completed\n State-of-the-Art office tower in Houston, Texas was purchased for U.S.\n $442.5 million. As one of downtown Houston's most energy efficient\n office buildings, Hess Tower has achieved the prestigious LEED Platinum\n certification for Core and Shell, the U.S. Green Building Council's\n highest rating.\n\n\nThe property is comprised of an impeccably designed 29-storey office\n tower offering 844,763 rentable square feet of superior office space\n connected by a climate-controlled skybridge to its adjacent 10-level,\n 1,430 space parking garage.  Hess Tower is part of Houston's Pedestrian\n Tunnel System that interconnects 77 of Houston's major downtown office\n buildings to an abundance of upscale restaurants and retail, first\n class hotels, and world class sports and entertainment destinations.\n\n\nCompleted in June 2011, Hess Tower is fully leased to Hess Corporation,\n a global integrated energy company listed on the New York Stock\n Exchange. The purchase price was funded from the REIT's operating\n facilities and cash on hand (including proceeds from the REIT's\n offering of stapled units completed earlier today). The REIT has\n secured a commitment for a U.S. $250 million first mortgage financing\n at 4.5% per annum for 8 years. Closing of the mortgage is expected to\n occur in January 2012.\n\n\nTom Hofstedter, President and CEO of the REIT stated: \"This acquisition\n presents a truly rare opportunity to acquire a best-in-class, LEED\n Platinum office tower in an irreplaceable downtown Houston location,\n overlooking the recently completed Discovery Green Park, with a\n long-term triple net lease secured by a Fortune 100 investment grade\n tenant at a 6.6% capitalization rate. Hess Tower, along with the\n recently acquired Gotham Center in New York City and the Bow in\n downtown Calgary, will together become the hallmark of our portfolio of\n high quality properties that will provide stable and growing cash flow\n to our unitholders for decades to come\".\n\n\nAbout H&R REIT \n\n\nH&R REIT is an open-ended real estate investment trust, which owns a\n North American portfolio of 39...