H&R Real Estate Investment Trust on Tuesday announced the $ 1.67 billion “strategic transaction”, which includes the sale of The Bow, as well as the sale of the 1.1 million square foot Bell office campus in Mississauga, in Ontario.
“Today’s announcement is proof of our commitment to our strategic repositioning and is a critical step on the road to a more streamlined structure,” said H&R President and CEO Thomas Hofstedter in a Press release.
The combined gross product of the two buildings is around $ 1.47 billion, the real estate agency said.
H&R said it would retain 15% of the net rent from the lease of energy giant Ovintiv Inc., formerly Encana Corp., ownership of the adjacent lands and retain the contracts to manage The Bow and Bell Campus, totaling approximately 203 millions of dollars.
The transaction significantly reduces the exposure of H&R’s Calgary offices from nine percent to three percent.
The sale of the two large office spaces also comes as part of a widespread hybrid working model inspired by the pandemic.
Many large Canadian companies have announced preliminary plans to allow employees to return to the office in person starting in mid-September under a hybrid work model.