TORONTO – H&R Real Estate Investment Trust (TSX:HR.UN) says it has purchased one-third interest in U.S.-based Echo Realty LP for an undisclosed amount.
H&R said it will pay a portion of the acquisition upon closing the deal, while the second and third payments will come 18 months and 30 months later. The purchase will also entitle the real estate trust to appoint two of the six board members at Echo.
Echo Realty LP has a portfolio of 176 properties, including retail assets, office buildings, industrial units and land parcels valued at approximately $1.17 billion. The majority tenant of the properties is grocer Giant Eagle Inc., which has locations mainly in western Pennsylvania and eastern Ohio. H&R said the funds from the purchase will be used to expand Echo’s portfolio in the eastern U.S.
Also on Wednesday, the real estate trust announced that it has sold a 50 per cent non-managing stake in Place d’Orleans, a shopping mall near Ottawa, to a fund managed by Montez Corp. for $110 million.
Montez will assume $55.1 million, or half of the outstanding mortgage on the mall, at an annual interest rate of 5.3 per cent maturing in Jan. 2018. The deal is expected to close in mid-August.
H&R holds a portfolio of 41 office, 112 industrial and 165 retail properties with a fair value of $13 billion.