H&R REIT Completes Bought Deal Financing

On May 9, 2007, H&R Real Estate Investment Trust (H&R REIT) completed a bought deal financing pursuant to which it issued approximately 8.86 million trust units, including 0.86 million trust units issued pursuant to an over-allotment option, for total gross proceeds of approximately $224.2 million. The trust units were sold to a syndicate of underwriters co-led by CIBC World Markets Inc. and RBC Dominion Securities Inc., and included Scotia Capital Inc., BMO Nesbitt Burns Inc., TD Securities Inc., Canaccord Capital Corporation and Desjardins Securities Inc.

The net proceeds of the financing will be used by H&R REIT to fund the acquisition of additional properties and future development projects, and for general corporate purposes. Any proceeds not initially used for such purposes will be used to reduce H&R REIT's indebtedness.

H&R REIT was represented by Blake, Cassels & Graydon LLP with a team that included William Fung and Tim Sunar (securities); Jeffrey Trossman and Andrew Spiro (tax) and by David Kutner of Minden Gross LLP for real estate matters.

The underwriters were represented by Goodmans LLP with a team that included David Matlow and Grant McGlaughlin (securities); Alan Bowman (tax) and Ken Herlin and Daniel Shapira (real estate).