Canada's H&R Real Estate Investment Trust faces intense opposition to its $4.8 billion breakup deal. Sandpiper Group, holding 1% of shares, and Scheer Rowlett & Associates, representing 4.6 million units (over 1.5%), have voted against the transaction. The deal would split H&R's industrial assets to Blackstone Inc. and residential properties to GO Residential REIT.
A key point of contention involves CRAL, a company controlled by CEO Tom Hofstedter's family, which would acquire approximately C$2 billion ($1.4 billion) in assets at a significant discount. RBC Capital Markets analysts estimate Hofstedter's CRAL is paying about C$500 million less than the assets' actual value. With H&R shares trading at C$9.81 and GO REIT units declining to C$10.50, the revised deal value sits around C$10.50 per share.
H&R's independent trustees unanimously recommended the deal as the best option after failing to secure alternative offers. Shareholders are scheduled to vote on Nov. 13, with the transaction requiring two-thirds approval and a majority from minority investors.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing