H&R REIT Holders Reject C$6.7 Billion Takeover

A Canadian landlord's breakup plan got broken up by its own investors.

H&R Real Estate Investment Trust unitholders voted Friday against a sale to GO Residential REIT and a group that included Blackstone, Bisnow reported ^[1]. When it was announced in August, the deal implied an enterprise value of about C$6.7 billion and an equity value of about C$3.4 billion for H&R, according to the trust ^[3].

What was on the table

• Holders would have received C$4.28 in cash and 0.5688 GO units for each H&R unit, worth C$12.01 when the deal was signed ^[3].
• That price was a 14.5% premium to H&R's unaffected closing price on June 10, 2026, the trust said ^[3].
• GO would have taken 27 properties with about 10,300 apartments across seven Sun Belt markets and New York ^[3].
• GO's units have dropped more than 30% since the start of the year, which made the stock part of the offer less appealing, The Real Deal reported ^[2].

But the fight is not over. Hours after the vote, GO sued in the Ontario Superior Court of Justice for a C$102 million termination fee, arguing H&R did not keep backing the deal, The Real Deal reported ^[2]. Bisnow, citing Reuters, said H&R will not owe a fee ^[1]. Opponents objected to a piece that let CRAL, a company tied to the family of CEO Tom Hofstedter, buy assets with an accounting value near C$1.98 billion ^[1].

What it means for you

REIT investors do have a vote, and big pension funds just showed it can sink a signed deal. By our math, the cash part of the offer was about 36% of its C$12.01 headline value, so the rest rode on GO's falling unit price ^[3][2]. H&R now plans to stay public, sell assets and resume regular distributions plus a special payout to cover paused months ^[1][2].

Zoom out

Deals paid partly in a buyer's stock are only as good as that stock. With rates high and REIT shares volatile, more holders may push for cash or walk away ^[2].