H&R REIT (HR-U) announced a $6.7B transaction to split up its remaining real estate assets - with Blackstone, Crestpoint, and PSP taking a bite out of its industrial footprint…

… the CEO’s family office absorbing its non-core assets, and GO REIT (GO-U) acquiring its residential portfolio for US$2.8B. If closed, the deal would make GO the second largest residential REIT on the TSX…

… and shift its portfolio away from the pure-play New York luxury footprint it IPO’d with last year. While there’s a clear rationale for the deal, with management highlighting margin expansion and leverage reduction post-close…

… the deal complexity and discounted equity financing introduce more uncertainty than previous resi takeouts. Let’s see what happens.

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