Toronto-headquartered GO Residential Real Estate Investment Trust (TSX: GO.U) announced its acquisition of 27 properties from H&R Real Estate Investment Trust (TSX: HR.UN) valued at approximately $2.8 billion.
The transaction is designed to expand GO’s residential portfolio beyond New York City into major Sunbelt markets while creating Canada’s second largest publicly traded residential REIT by enterprise value.
Under the terms of the transaction, GO will issue approximately 134 million new trust units and pay approximately $30 million in cash. GO will also assume approximately $395 million in H&R debentures and approximately $1.1 billion in property-level debt.
GO CEO Joshua Gotlib stated, “We have built one of the highest-quality luxury residential portfolios in New York City, and this transaction takes that foundation and adds Sunbelt scale, balance sheet strength, and earnings growth – transforming GO into one of Canada’s largest publicly-traded residential REITs. It will be a platform with a greater opportunity set, and competing for a different category of investor. We are acquiring best-in-class assets at an attractive basis, and we are doing it in a way that makes GO financially stronger and more diverse, consistent with our long-term strategy.”
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