Investor Sandpiper opposes H&R REIT's planned sale to Go Residential

what happened

Sandpiper Group, an investor holding roughly 1% of H&R Real Estate Investment Trust units, says it will vote against the proposed transaction with Go Residential REIT, according to Seeking Alpha. Founder and CEO Samir Manji said the firm doubts the offer provides fair value for H&R's public unitholders.

Sandpiper is not alone. The same source notes that RBC Global Asset Management and Mill Pond also opposed the deal last week. In August, H&R agreed to be acquired by a group including Go Residential, Blackstone, Crestpoint, PSP Investments and a company controlled by relatives of H&R CEO Tom Hofstedter, in a transaction valued at about C$6.7 billion.

why it matters

In a deal of this size, growing opposition from unitholders raises the risk that the vote becomes harder to pass and that terms get revisited. Sandpiper's stake is small, but the list of dissenting investors is growing, which matters for Canadian REIT investors and for how the target is valued.

market impact

H&R REIT: rising investor objections could complicate approval of the deal

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