H&R Real Estate Investment Trust (HR-UN.TO) confirmed that it has had preliminary, non-exclusive discussions with Blackstone regarding a potential sale of certain assets of the REIT, overnight Thursday.
The company has not entered into any arrangements with Blackstone and added that there are no assurances that the REIT will be proceeding with any sale or other transaction. H&R REIT's response came after a request from the Canadian Investment Regulatory Organization concerning the recent trading activity in the REIT's units and recent media reports, it said.
"The REIT intends to provide further updates only as circumstances warrant and in accordance with applicable securities laws," said the company in a statement.
Bloomberg News had reported on Thursday that Blackstone Inc. was in discussions with the REIT about a potential acquisition citing "people with knowledge of the matter", and that the talks followed takeover negotiations last year involving H&R, Blackstone, TPG Inc. and Crestpoint Real Estate Investments Ltd. that fell apart.
"Hedge fund K2 & Associates Investment Management Inc. has pushed the company to explore a sale, arguing that it continues to trade at a substantial discount to the value of its real estate holdings," the Bloomberg report said. " It remains unclear whether TPG or Crestpoint would participate in any transaction should Blackstone ultimately reach a takeover deal for the REIT, the people said."
Shares of the REIT closed up 8.6% to $11.39 on Thursday on the Toronto Stock Exchange.