Bell Canada Enters C$125 Million Build-to-Suit Agreement for Ontario Office Tower

H&R REIT Web Site - September 25, 2007

H&R Real Estate Investment Trust (TSX: HR.UN) announced that it has exercised its purchase option for the Phase III expansion of Bell Canada’s office complex in Mississauga, Ontario. The REIT will fund the construction of the 348,000 square foot, state-of-the-art building, which is expected to be completed in the summer of 2009. The estimated total construction cost is $125 million and the project will generate an un-levered return of 7.6%.

H&R President and CEO Tom Hofstedter added, “We are pleased to continue our development program with Bell Canada. We completed construction of the first, 525,000 square foot phase of this office complex in 2002 and the second phase of 249,000 square feet in 2004. In keeping with our strategy of leasing premises to creditworthy tenants on a long-term basis, the Phase III expansion will have a 20-year lease, as was the case in the first two phases.” Sphere: Related Content