H&R REIT Enters into Trust Unit Financing

On April 9, 2003, H&R Real Estate Investment Trust entered into a non-brokered private placement financing of $100 million of trust units with accounts manager by a Canadian institutional manager. The financing is to be effected in four tranches: the first $25 million of units were issued on April 30 and the three remaining $25 million tranches of units are to be issued on or about July 31, October 31 and January 15, 2004. The trust units are being issued at a price that would provide a yield of 9.25 per cent on the date of issue, subject to satisfaction of certain conditions. Will Fung and Leslie Johnson of Fraser Milner Casgrain LLP represented H&R.