RBC Global Asset Management and Mill Pond Move to Block H&R REIT's 6.7 Billion Dollar Breakup Sale to Blackstone-Led Consortium

RBC Global Asset Management has announced it will vote against the proposed breakup and sale of Canada's H&R Real Estate Investment Trust, adding significant institutional weight to growing opposition against a deal that would transfer H&R's assets to a Blackstone-led consortium for approximately 6.7 billion dollars. RBC, one of H&R's largest equity investors holding 9.3 million units, confirmed its opposition through Managing Director Hanif Mamdani, who declined to elaborate on the reasons behind the decision. Mill Pond has also announced opposition to the transaction.

Under the deal, announced in August, H&R agreed to sell its assets to GO Residential REIT and a group of co-purchasers including Blackstone, Crestpoint Real Estate Investments, the Public Sector Pension Investment Board, and a company controlled by family members of H&R chief executive Tom Hofstedter. The transaction values H&R units at 12.01 each, representing a 14.5 percent premium to the unaffected closing price on June 10, 2026, and would see Blackstone take ownership of a portfolio of Canadian industrial properties. The residential component covers 27 properties and nearly 10,300 suites across seven Sunbelt markets and New York.

H&R's board unanimously recommended that unitholders vote in favor of the deal, citing the upfront premium and immediate cash liquidity. A special meeting of unitholders is now scheduled for November 13, with the transaction subject to unitholder, court, and regulatory approvals. The opposition from two named institutional investors raises uncertainty about whether the deal can clear the required threshold.

Separately, real estate led broad market gains on October 9, with the sector topping all 11 S&P sectors and tower REITs including American Tower, Crown Castle, and SBA Communications among the outperformers. LiquidAcre also announced a partnership with Uphold to build digital infrastructure for tokenized real estate, covering trading, custody, and KYC services.