Business · Companies · 9 hrs ago
H&R unitholders reject $3.4-billion GO takeover bid
H&R Real Estate Investment Trust unitholders rejected a $3.4-billion takeover bid from a consortium led by GO Residential REIT.
GO has gone to court in Ontario seeking a $102-million termination fee, turning a deal supported by H&R’s management and board into a dispute.
H&R says the vote does not trigger any termination payment, while GO alleges H&R’s CEO and board failed to support the deal; H&R declined to comment on the lawsuit.
The offer faced criticism over conflicts and whether unitholders would receive fair value, including because the CEO’s family company was to buy properties from H&R.
The takeover would have given GO H&R’s U.S. residential properties, which make up 66 per cent of H&R’s portfolio.
H&R plans board changes and CEO succession planning, and says it will pursue property sales to simplify the REIT.
It also intends to pay a special distribution of about $2.30 per unit before year-end and retroactively pay monthly dividends.
H&R Real Estate Investment Trust unitholders voted against a proposed $3.4-billion takeover by a consortium led by GO Residential Real Estate Investment Trust.
GO said it would seek a $102-million termination fee from H&R in court.
H&R said the vote did not trigger termination payments, while GO alleged that H&R’s chief executive and board had breached their obligations to support the deal.
H&R said it would respect the vote and pursue property sales, a board refreshment process and CEO succession planning.
The proposed deal faced criticism over its sale process, conflicts and the value offered to unitholders.
- Who
- H&R Real Estate Investment Trust unitholders and GO Residential Real Estate Investment Trust.
- What
- H&R unitholders rejected GO’s proposed $3.4-billion takeover. GO said it would seek a $102-million termination fee in court.
- When
- The vote took place on Friday, November 13, 2026.
- Where
- H&R is a Canadian REIT; the court filing was made with the Ontario Superior Court of Justice.
- Why
- Proxy adviser Institutional Shareholders Services cited concerns over the sale process, conflicts, deal logic and whether unitholders would receive fair value relative to insiders.
GO Residential REIT
H&R Real Estate Investment Trust
Termination fee
GO Residential REIT
GO says it is entitled to a $102-million fee and is going to court to seek payment.
H&R Real Estate Investment Trust
H&R said the unitholder vote did not trigger termination payments.
Deal support
GO Residential REIT
GO alleges H&R’s CEO and board breached their obligation to support the takeover.
H&R Real Estate Investment Trust
H&R declined to comment on GO’s lawsuit and said it would respect the vote against the transaction.
H&R’s board launched a strategic review of its 107-property portfolio.
H&R announced a stock-and-cash takeover deal with GO.
GO alleges that H&R’s CEO and board shifted their focus to appeasing certain unitholders.
H&R unitholders voted against the takeover, and GO said it would seek the termination fee in court.
- Proposed takeover value
- $3.4-billion
- Termination fee sought by GO
- $102-million
- H&R portfolio at strategic review
- 107 properties
- H&R industrial real estate
- 20 per cent of assets, valued at $1.4-billion in the takeover
- Proposed special cash distribution
- Approximately $2.30 per unit before year-end
What people are saying
a board refreshment process that will include CEO succession planning
a simplified value-driven REIT
concerns over the sale process, conflicts, deal logic and whether disinterested unitholders are capturing fair value relative to insiders