03:40 PM EDT, 04/03/2024 (MT Newswires) -- H&R Real Estate Investment Trust (HR-UN.TO) on Wednesday said the previously announced initial public offering (IPO) of Lantower Residential Real Estate Development Trust (No. 1) (the REDT) has been completed, raising the maximum amount of US$52 million.

A statement noted the REDT was formed to partner with H&R's subsidiary Lantower Residential on two projects in Florida, which are expected to contain a total of 601 units. Development is expected to start shortly, with total budgeted costs of near US$210 million. Construction is expected to be completed and lease-up to commence in Q1 2026 for the Largo, Florida project and Q2 2026 for the Kissimmee, Florida project

Immediately following the offering's close, the REDT indirectly acquired a 70.9% interest in the projects, with H&R retaining a 29.1% ownership interest through Lantower Residential. The REDT and the project are managed by affiliates of H&R.

H&R retains an option to acquire the projects. The transaction is expected to lower cash flow requirements and leverage impact for the two development projects on H&R, the statement added.

Price: 9.02, Change: -0.01, Percent Change: -0.06