H&R REIT Completes Bought Deal Financing

On October 31, 2005, H&R Real Estate Investment Trust (H&R REIT) completed a bought deal financing pursuant to which it issued 7.675 million trust units for total gross proceeds of approximately $150 million. The trust units were sold to a syndicate of underwriters led by CIBC World Markets Inc., and included RBC Dominion Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., TD Securities Inc., Canaccord Capital Corp. and Desjardins Securities Inc.

The net proceeds of the financing will be used by H&R REIT to fund the acquisition of additional properties. Any proceeds not initially used for such purposes will be used to reduce H&R REIT's indebtedness.

H&R REIT was represented by Fraser Milner Casgrain LLP with a team that included William Fung, Leslie Johnson, Joshua Yarmus and Gennady Ferenbok (securities) and Jules Lewy (tax), and by David Kutner, Robyn Kestenberg and Leonard Baranek of Minden Gross Grafstein & Greenstein LLP for real estate matters. The underwriters were represented by Goodmans LLP with a team that included David Matlow and Chantal Thibault (securities), Alan Bowman and Peter Jovicic (tax) and Ken Herlin, Jeffrey Shore and Dan Shapira (real estate).