H&R REIT Completes Bought Deal Financing

On November 8, 2006, H&R Real Estate Investment Trust completed a bought deal financing pursuant to which it issued 6.5 million trust units for total gross proceeds of approximately $150.5 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 Corporation 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 Blake, Cassels & Graydon LLP with a team that included William Fung, Marc Deeby and Colin Ritchie (securities) and Kenneth Snider (tax), and by David Kutner of Minden Gross Grafstein & Greenstein LLP for real estate matters.

The underwriters were represented by Goodmans LLP with a team that included David Matlow, Grant McGlaughlin, and Scott MacIntosh (securities), Alan Bowman (tax), and Ken Herlin and Daniel Shapira (real estate).


Scott MacIntosh Alan Bowman Grant E. McGlaughlin William Fung Daniel Shapira Kenneth J. Snider Colin Ritchie David M. Kutner Ken Herlin David J. Matlow