H&R REIT to sell assets to GO Residential, others in $6.7 billion deal

H&R Real Estate Investment Trust has agreed to sell all of its assets for approximately $6.7 billion to GO Residential Real Estate Investment Trust and a group of investors, including U.S. private equity firm Blackstone Inc. The deal encompasses a portfolio of 27 properties and nearly 10,300 units across seven Sunbelt markets and New York.

Upon completion, H&R will own a 66.9% stake in the combined entity, GO REIT, on a pro forma basis. The transaction aims to streamline H&R's portfolio and concentrate on high-quality residential assets while delivering a substantial ownership stake to existing unitholders. With the deal expected to finalize in the fourth quarter of the current year, it must secure approval from unitholders, courts, and regulators.

H&R initiated discussions with Blackstone in June following inquiries from securities regulators, following media reports about a potential sale.