H&R REIT CREATES LANTOWER REAL ESTATE DEVELOPMENT TRUST IPO FOR TWO FLORIDA PROJECTS
The Purpose of the REDT will be to partner with the REIT's subsidiary Lantower Residential on two residential development projects in
(i) a project to build one contiguous building of four stories comprising approximately 261,000 net rentable square feet consisting of 271 residential rental units sitting on 8.4 acres of land in
(ii) a project to build two residential buildings of four stories comprising approximately 342,000 net rentable square feet, consisting of 330 residential rental units on 17.2 acres of land in
The REDT will aim to develop the assets, commence lease-up and operate the Projects, and subsequently achieve a liquidity event.
Highlights:
- Formation of a REDT to accelerate H&R's project development process for the two projects
- Lower cash flow requirements and leverage impact for the two development projects on H&R
- H&R will have an option to acquire the Projects
"The creation of the REDT is expected to maximize value both for H&R REIT and the REDT," said
"H&R REIT is proud to continue as a capital markets innovator being the first public issuer sponsor of a real estate development IPO dedicated to development assets inside its own pipeline. This vehicle represents a new and innovative capital source that will enable us to build on our longstanding commitment to owning and developing high quality real estate," continued
The minimum offering size of the IPO is
The Projects are zoning compliant and entitled development projects with development expected to commence shortly following closing of the IPO. Total budgeted costs for the Projects are approximately
The REDT will be managed by an affiliate of the REIT, and administered by a board of trustees, a majority of whom are independent of the REIT.
The IPO is expected to be completed in late
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Trust in
H&R REIT is one of
Lantower Residential, a subsidiary of H&R REIT, is a vertically integrated multifamily real estate company based in
Certain information in this news release contains forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements) relating to H&R's objectives, beliefs, plans, estimates, targets, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including with respect to H&R's future plans and targets, the REIT's ability to take advantage of value-creating opportunities, H&R's strategy to grow its exposure to residential assets in
Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks, uncertainties and other factors including those risks and uncertainties discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results, performance or achievements of H&R to differ materially from the forward-looking statements contained in this news release. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements include assumptions relating to the general economy, including the effects of increased inflation; debt markets continue to provide access to capital at a reasonable cost, notwithstanding rising interest rates; and assumptions concerning currency exchange and interest rates. Additional risks and uncertainties include, among other things, risks related to: real property ownership; the current economic environment; credit risk and tenant concentration; lease rollover risk; interest rate and other debt-related risk; development risks; residential rental risk; capital expenditures risk; currency risk; liquidity risk; risks associated with disease outbreaks; cyber security risk; financing credit risk; ESG and climate change risk; co-ownership interest in properties; general uninsured losses; joint arrangement and investment risks; dependence on key personnel and succession planning; potential acquisition, investment and disposition opportunities and joint venture arrangements; potential undisclosed liabilities associated with acquisitions; competition for real property investments; Unit price risk; potential conflicts of interest; availability of cash for distributions; credit ratings; ability to access capital markets; dilution; unitholder liability; redemption right risk; risks relating to debentures; tax risk; additional tax risks applicable to unitholders; investment eligibility; and statutory remedies. H&R cautions that these lists of factors, risks and uncertainties are not exhaustive. Although the forward-looking statements contained in this news release are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.
Readers are also urged to examine H&R's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from the forward-looking statements contained in this news release. All forward-looking statements contained in this news release are qualified by these cautionary statements. These forward-looking statements are made as of
Additional information regarding H&R REIT is available at www.hr-reit.com and on www.sedarplus.com.
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