Sandpiper Group Opposes H&R REIT Asset Sale to GO Residential
Sandpiper Group announced it will vote against the sale of H&R REIT assets, alleging the deal undervalues units and provides preferential terms to insiders.
The Sandpiper Group, a private equity firm owning approximately 1% of H&R Real Estate Investment Trust, announced its intention to vote against a proposed transaction to sell H&R's assets. The deal involves a buyer group consisting of GO Residential Real Estate Investment Trust, Blackstone, Crestpoint, and CRAL Class B Limited.
Under the proposed terms, H&R unitholders would receive C$4.28 in cash and 0.5688 of a GO REIT unit per H&R unit. Sandpiper argues this consideration, valued at roughly C$10.15 per unit as of October 1, 2026, falls below the fair market value range of C$10.80 to C$13.20 established by an independent valuator. The firm further notes that the offer is significantly lower than H&R's own reported net asset value of C$16.23.
Sandpiper also alleges the transaction contains conflicts of interest, claiming it provides preferential terms for CRAL, a company controlled by the family of H&R CEO Thomas J. Hofstedter. According to Sandpiper, the deal allows insiders to receive a fixed redemption price while public unitholders are left to bear market risk and substantial tax liabilities.
