H&R REIT Completes Bought Deal Financing

On July 27, 2010, H&R Real Estate Investment Trust (“H&R REIT”) completed a bought deal financing pursuant to which it issued $100,000,000 aggregate principal amount of 5.90 per cent Series D convertible unsecured subordinated debentures due June 30, 2020. The convertible debentures were sold to a syndicate of underwriters co-led by CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc., and included Scotia Capital Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp. and Dundee Securities Corporation.

The net proceeds of the financing will be used by H&R REIT to repay debt (including debt incurred to finance acquisitions and/or development of properties), for potential acquisitions and for general trust purposes.

H&R REIT was represented by Blake, Cassels & Graydon LLP with a team that included William Fung, Sheldon Vanderkooy, Ali Naushahi and Suneel Gokhale (securities) and Jeffrey Trossman and Andrew Spiro (tax) and by Abraham Leitner and Erica Duncan of Davies Ward Phillips & Vineberg LLP for US tax matters.

The underwriters were represented by Goodmans LLP with a team that included Allan Goodman, Cristina Alaimo and James Rickert (securities); Mark Biderman (tax) and Ken Herlin and Daniel Shapira (real estate)