H&R Real Estate Investment Trust of Toronto announced today it has closed a deal in which it will borrow $175 million by selling debentures due in 2020.
In a press release, the firm said it would use the proceeds “to repay outstanding indebtedness incurred under existing credit facilities thereby enabling H&R REIT to have greater financial capacity to pursue future acquisitions and developments, and otherwise for general trust purposes.”
H&R REIT owns 40 office properties, 117 single-tenant industrial properties, 133 retail properties and three development projects. It recently acquired Corus Quay in Toronto, which houses Corus Entertainment Inc. radio and television studios, on former industrial land on the shore of Lake Ontario west of Sherbourne Street.
On Thursday the firm said it had closed a previously-announced deal to sell $175 million in senior debentures, with an interest rate of 4.45 per cent, through a syndicate of underwriters led by Royal Bank of Canada (RBC) Capital Markets and the Canadian Imperial Bank of Commerce (CIBC).
Major H&R properties in Ontario include a Canadian Tire distribution centre in Brampton, the Atrium on Bay retail and office complex in Toronto, 160 Elgin Street in Ottawa and three Bell Canada buildings on Creekbank Road in Mississauga, about a kilometre southwest of Toronto-Lester B. Pearson International Airport. Other major Toronto office properties include 310, 320 and 330 Front Street, which houses RBC offices and 25 Sheppard Avenue West, whose tenants include Nestle Canada and Transcontinental Media.