Business
H&R Reports Solid Results for Q2 2014
TORONTO , Aug. 14, 2014 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT" or ...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\nTORONTO, Aug. 14, 2014 /CNW/ - H&R Real Estate Investment Trust (\"H&R\n REIT\" or the \"REIT\") and H&R Finance Trust (collectively, \"H&R\") (TSX:\n HR.UN; HR.DB.D; HR.DB.E and HR.DB.H) today announced its financial\n results for the six months ended June 30, 2014.\n\n\nSummary of Significant Q2 2014 Activity\n\n\nLong Island City Project\n\n\nIn June 2014, the REIT purchased a 50% interest to develop a landmark\n luxury residential rental development (the \"Long Island City Project\")\n in Long Island City, NY. Tishman Speyer, a U.S. real estate company,\n will act as the developer and manager of the Long Island City Project.\n The parcel is zoned for 1.2 million square feet of mixed-used\n development, potentially accommodating up to approximately 1,600\n residential rental units and approximately 30,000 square feet of retail\n space developed in three phases. The site is located adjacent to the\n REIT's 2 Gotham Center office property. In the initial phase, the REIT\n and Tishman Speyer plan to construct a 42-storey tower, which will\n include 700 rental apartment units. Construction is expected to begin\n in 2015 with occupancy expected to commence in 2017. The REIT's share\n of the total land cost is U.S. $55.6 million which was at a substantial\n discount to appraised value. The total Long Island City Project cost of\n all phases at the 100% level is expected to be approximately U.S. $875\n million.\n\n\nPrimaris Portfolio Dispositions\n\n\nIn Q2 2014, the REIT sold a 50% non-managing interest in three enclosed\n shopping centres: Regent Mall in Fredericton, NB; McAllister Place in\n Saint John, NB; and Grant Park in Winnipeg, MB for a total price of\n $219.0 million, at a capitalization rate of 5.6% before property\n management fee income.  The purchaser assumed 50% of the existing\n mortgages.  Net proceeds were approximately $111.6 million.  This\n transaction, as well as the sale of a 50% non-managing interest in\n Place d'Orleans in Orleans, ON in 2013, further leverages the Primaris\n management platform to act as both owners and third party managers of\n regional shopping centres.\n\n\nH&R Portfolio Dispositions\n\n\nIn June 2014, the REIT sold a 50% non-managing interest in 3777 Kingsway\n St. in Burnaby, B.C., a 686,170 square foot office property, for $86.5\n million, at...