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Canada’s H&R Real Estate Investment Trust has agreed to a C$6.7 billion (USD 4.81 billion) transaction that will divide its portfolio between GO Residential REIT and a consortium including Blackstone, PSP Investments and Crestpoint. GO Residential will acquire 27 U.S. residential properties valued at about USD 2.8 billion, while the consortium will acquire H&R’s other assets. The deal values H&R at C$12.01 per trust unit, a 14.5% premium to its previous closing price. The transaction is expected to close in the fourth quarter of 2026 and represents the latest step in H&R’s multi-year portfolio restructuring.
Canada’s H&R Real Estate Investment Trust has agreed to a C$6.7 billion (USD 4.81 billion) breakup transaction that will separate its U.S. residential portfolio from its other assets. Under the arrangement, GO Residential REIT will acquire H&R’s U.S. residential properties, while a consortium comprising Blackstone, PSP Investments, Crestpoint and entities linked to H&R Chief Executive Officer Tom Hofstedter will acquire the remaining assets.
H&R said the transaction concludes a multi-year effort to simplify its portfolio and increase its focus on residential real estate.
The overall transaction values H&R at C$12.01 per trust unit, representing a 14.5% premium to the REIT’s previous closing price.
As part of the transaction, GO Residential will acquire 27 H&R properties with an estimated value of about USD 2.8 billion. The acquisition will be funded through the issuance of 134.2 million new GO Residential units, USD 30 million in cash and the assumption of debt.
The transaction is expected to close in the fourth quarter of 2026, subject to the required conditions and approvals.
For GO Residential, the acquisition will expand its presence beyond its core New York market into several U.S. Sun Belt markets. The company expects the portfolio to benefit from employment growth, population inflows and housing policies in these regions, which it believes can support occupancy and earnings.
The acquisition comes at a time when the broader U.S. housing market is facing pressure from weak consumer sentiment, persistent inflation and elevated interest rates. These conditions have continued to affect housing affordability and the operating environment for residential real estate companies.
The deal also follows H&R’s broader strategic restructuring over the past several years. The REIT has been reducing its exposure to office and retail assets while increasing the share of residential and industrial properties in its portfolio. As part of this strategy, H&R completed the tax-free spin-off of 27 properties, including its enclosed shopping centres, and sold ownership interests in 69 properties with a combined value of about C$3 billion through the end of 2025. It had also sold or contracted to sell additional assets during 2026.
H&R’s portfolio had already become more concentrated in residential and industrial real estate as the restructuring progressed. The company’s residential and industrial assets accounted for 67% of its proportionate portfolio at the end of 2024, compared with 35% when its strategic repositioning plan was launched in 2021.
The REIT’s portfolio stood at 105 properties as of the end of the first quarter of 2026, comprising 26 residential, 66 industrial, 12 office and one retail property. These assets covered about 20.3 million square feet, with residential properties accounting for about 8.15 million square feet.
The planned breakup therefore represents a further step in H&R’s move away from a diversified property portfolio. The company had also held preliminary, non-exclusive discussions with affiliates of Blackstone earlier in 2026 regarding a possible sale of certain assets, although it had not entered into an agreement at that stage.
With the latest transaction, the U.S. residential assets will move to GO Residential, while the other assets will be acquired by the separate investor group. The structure allows H&R to complete the portfolio simplification strategy it has pursued for several years while giving GO Residential a larger presence in U.S. residential markets outside New York.
Source Reuters
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