H&R Reit generates $72 million from sale of non-core assets



    TORONTO, July 2 /CNW/ - H&R Real Estate Investment Trust (TSX: HR.UN) has
completed the sale of 11 retail properties comprising approximately
1.1 million square feet of leasable area. The sale generated gross proceeds of
approximately $156 million, net proceeds of approximately $72 million, and a
gain on sale of approximately $9 million.

    
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    Property location                            Gross leasable area (sq.ft.)
    -------------------------------------------------------------------------
    720 Maloney Blvd., Gatineau, QC                       283,970
    -------------------------------------------------------------------------
    220 Chain Lake Dr., Halifax, NS                       138,027
    -------------------------------------------------------------------------
    1701 Merivale Rd., Ottawa, ON                         127,489
    -------------------------------------------------------------------------
    1160 Desserte Ouest, Laval, QC                        116,147
    -------------------------------------------------------------------------
    878-894, 900 Tower St. South, Fergus, ON              105,955
    -------------------------------------------------------------------------
    1345-1365 Huron St. and 1250-1270 Highbury
     Ave., London, ON                                      87,529
    -------------------------------------------------------------------------
    448 St. Clair St., Chatham, ON                         71,423
    -------------------------------------------------------------------------
    110 North Front St., Belleville, ON                    66,714
    -------------------------------------------------------------------------
    857 Cecile Blvd., Hawkesbury, ON                       54,950
    -------------------------------------------------------------------------
    900 Aberdeen Ave., Hawkesbury, ON                      17,032
    -------------------------------------------------------------------------
    21 College St. West, Belleville, ON                     5,211
    -------------------------------------------------------------------------
    

    H&R President & CEO Tom Hofstedter said, "H&R expects to invest
approximately $330 million during 2008 in three, major development projects,
including the $1.4-billion office complex called The Bow in Calgary. Our
strategy, as always, is to minimize development risk and maximize return on
equity invested by pre-leasing the properties to creditworthy tenants with
long terms to expiry. To fund our development projects this year, we have
raised capital from the issuance of units and convertible debentures
($287 million to date) and net proceeds from the sale of non-strategic assets
($117 million to date)."

    About H&R REIT

    H&R REIT is a TSX-listed, open-ended real estate investment trust, which
owns a North American portfolio of 35 office, 124 industrial and 129 retail
properties comprising 43 million square feet, with a net book value of
$4.4 billion. The foundation of H&R's success since inception in 1996 has been
a disciplined strategy that leads to consistent and profitable growth.
Additional information regarding H&R REIT is available at www.hr-reit.com and
on www.sedar.com.

    Certain information in this news release contains forward-looking
statements within the meaning of applicable securities laws including, among
others, statements relating to the Trust's objectives, strategies to achieve
those objectives, the Trust's beliefs, plans, estimates, and intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical facts.
Forward-looking statements generally can be identified by words such as
"outlook", "objective", "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plans" or "continue" or similar
expressions suggesting future outcomes or events. Such forward-looking
statements reflect the Trust's current beliefs and are based on information
currently available to management. These statements are not guarantees of
future performance and are based on the Trust's estimates and assumptions that
are subject to risk and uncertainties, including those discussed in the
Trust's materials filed with the Canadian securities regulatory authorities
from time to time, which could cause the actual results and performance of the
Trust to differ materially from the forward-looking statements contained in
this news release. Those risks and uncertainties include, among other things,
risks related to: Unit prices; availability of cash for distributions;
development and financing relating to the Bow development; credit risk and
tenant concentration; interest rate and other debt related risk; tax risk;
ability to access capital markets; dilution; lease rollover risk; construction
risks; real property; currency risk; government regulation; investment
eligibility; unitholder liability; co-ownership interest in properties;
dependence on key personnel; mezzanine financing credit risk; competition for
real property investments influence of H&R Property Management over the REIT;
potential conflicts of interest; redemption right; statutory remedies,
environmental matters; reliance on one corporation for management of a
significant number of the Trust's properties; changes in legislation and
indebtedness of the Trust. Material factors or assumptions that were applied
in drawing a conclusion or making an estimate set out in the forward-looking
statements include that the general economy remains stable; interest rates are
relatively stable; and equity and debt markets continue to provide access to
capital. The Trust cautions that this list of factors is not exhaustive.
Although the forward-looking statements contained in this news release are
based upon what the Trust believes are reasonable assumptions, there can be no
assurance that actual results will be consistent with these forward-looking
statements. All forward-looking statements in this news release are qualified
by these cautionary statements. These forward-looking statements are made as
of today and H&R, except as required by applicable law, assumes no obligation
to update or revise them to reflect new information or the occurrence of
future events or circumstances.

    %SEDAR: 00002857E




For further information:

For further information: Larry Froom, Chief Financial Officer, H&R REIT,
(416) 635-7520, or e-mail info@hr-reit.com


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