TORONTO—H&R Real Estate Investment Trust and Primaris Real Estate Investment Trust have jointly announced that H&R has spun out 27 shopping mall and other properties with an appraised value of approximately $2.4 billion to Primaris.
The properties were secured with debt totalling approximately $723 million, stated a Jan. 4 release.
Immediately following the arrangement, Primaris acquired from the Healthcare of Ontario Pension Plan (HOOPP) an additional portfolio of eight properties with an appraised value of $800 million.
As a result of the deal with H&R and the HOOPP transaction, Primaris now owns interests in 35 properties with an appraised value of approximately $3.2 billion as of Sept. 30, 2021, encompassing 11.4 million square feet of gross leasable area.
“With the support and careful consideration of H&R REIT, Primaris REIT today begins a new phase of its evolution, extremely well positioned as an independent Canadian REIT,” said Primaris CEO Alex Avery in a statement.
The arrangement with Primaris forms part of H&R’s previously announced strategic repositioning plan to transform from a diversified REIT into a simplified, growth-oriented REIT with increased multi-residential and industrial exposure.
Primaris now becomes one of the four largest enclosed shopping centre platforms in Canada, stated the release.