Update on Construction Financing For The Bow

    TORONTO, April 1 /CNW/ - H&R Real Estate Investment Trust ("H&R") (TSX:
HR.UN; HR.DB) is pleased to announce that commitments have been secured from
various Canadian financial institutions resulting in the successful
syndication, co-led by RBC Capital Markets and TD Securities, of a
$425-million construction facility (the "Financing") for H&R's development
project in Calgary - "The Bow". Legal documentation is currently being
negotiated. The closing of the Financing, which is expected within the next
few weeks, is subject to certain customary conditions, including completion of
documentation, which are typical for a construction facility.
    H&R President & CEO Tom Hofstedter said, "We are very pleased to have
reached this important milestone in the development of what will be the
largest office tower in Canada west of Toronto, and a magnificent addition to
H&R's North American portfolio. This major financing is a testament to the
confidence that Canadian financial institutions have in H&R's ability to build
a landmark office tower successfully."

    About H&R REIT

    H&R REIT is an open-ended real estate investment trust, which owns a
North American portfolio of 35 office, 123 industrial and 121 retail
properties comprising 42 million square feet, with a net book value of $4.7
billion. H&R Finance Trust is an unincorporated investment trust, which
primarily invests in notes issued by an H&R REIT subsidiary. The units of H&R
REIT trade together with the units of H&R Finance Trust as stapled units on
the Toronto Stock Exchange. 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 and H&R Finance Trust is
available at www.hr-reit.com and on www.sedar.com.

    Certain information in this news release contains forward-looking
information within the meaning of applicable securities laws (also known as
forward-looking statements) including, among others, statements relating to
H&R REIT's and H&R Finance Trust's objectives, strategies to achieve those
objectives, REIT's and H&R Finance Trust's beliefs, plans, estimates, and
intentions, and similar statements concerning anticipated future events,
results, circumstances, performance or expectations that are not historical
facts including, in particular, H&R REIT's expectation regarding future
developments in connection with The Bow. Forward-looking statements generally
can be identified by words such as "outlook", "objective", "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", "should", "plans",
"project", "budget" or "continue" or similar expressions suggesting future
outcomes or events. Such forward-looking statements reflect H&R REIT's and H&R
Finance 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 H&R REIT's and H&R Finance Trust's estimates and
assumptions that are subject to risk and uncertainties, including those
discussed in H&R REIT's and H&R Finance Trust's materials filed with the
Canadian securities regulatory authorities from time to time, which could
cause the actual results and performance of H&R REIT and H&R Finance Trust to
differ materially from the forward-looking statements contained in this news
release. Those risks and uncertainties include, among other things: Unit
prices; availability of cash for distributions; development and financing
relating to The Bow development; liquidity; credit and tenant concentration;
interest rates and financing; tax; ability to access capital markets;
dilution; lease rollover; construction; real property; debentures; mezzanine
financing credit; currency risk; environmental matters; redemption right; and
unitholder liability. 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 is stable; local real estate
conditions are stable; interest rates are relatively stable; and equity and
debt markets continue to provide access to capital. H&R REIT and H&R Finance
Trust caution that this list of factors is not exhaustive. Although the
forward-looking statements contained in this news release are based upon what
H&R REIT and H&R Finance Trust believe 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 REIT and H&R Finance Trust, 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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