H&R Real Estate Investment Trust, one of Canada's largest landlords, announced a plan to spin off or sell its retail and office properties in a bid to focus on the residential and industrial sector.
The trust says it will spin off its Primaris properties including all of its enclosed shopping malls to a new publicly traded REIT that it will create with the Healthcare of Ontario Pension Plan.
Immediately following the spinoff, H&R unitholders will own a 74% stake in Primaris, while HOOPP will own 26%.
It says the money from the sales will be used to fund its multi-residential and industrial development pipeline and for acquisitions in key markets in Canada and the U.S.
The moves follow H&R's sale of the Bow office tower in Calgary and the Bell office campus in Mississauga, Ont., for a total of $1.47 billion in gross proceeds.