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H&R REIT to Sell the Atrium
H&R REIT to Sell the Atrium H&R REIT to Sell the Atrium Canada NewsWire ...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nH&R REIT to Sell 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 to Sell the Atrium\nCanada NewsWire\nTORONTO, May 8, 2019\n\n\n\nTORONTO, May 8, 2019 /CNW/ - H&R Real Estate Investment Trust (\"H&R\") (TSX: HR.UN) is pleased to announce that it has entered into an agreement to sell The Atrium for $640 million, subject to customary closing conditions.  The purchase price equates to a capitalization rate of 4.56%.  Closing is expected to occur on or about June 6, 2019.\nThe Atrium, comprising 595 Bay Street, 20 & 40 Dundas Street West, and 306 Yonge Street, is a 1.1 million square foot office and retail complex, effectively occupying a full city block in downtown Toronto at one of the busiest intersections in Canada.  \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 December 31, 2018, H&R had $1.6 billion of properties under development, with multiple additional high-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, up from $548 million as at December 31, 2018.  Management expects to record a gain of approximately $40 million, relative to its IFRS value, and a sale price approximately $295 million higher than its original purchase price. \nThe Atrium is currently unencumbered. H&R will provide 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. Assuming the proceeds from the sale were used to repay debt, H&R's debt to total asset ratio would improve to 42.1% from 44.6% at December 31, 2018.\nH&R's president and CEO Thomas Hofstedter...