Overview
- H&R unitholders voted down the proposed CA$6.7 billion breakup on Friday, Nov. 13, 2026, rejecting the offer of CA$4.28 cash plus 0.57 GO Residential shares per unit.
- Institutional investors and proxy advisers ISS and Glass Lewis said the deal’s economics had eroded as GO Residential shares fell and therefore advised voting against the transaction.
- A planned sale of certain assets to CRAL, a vehicle controlled by CEO Tom Hofstedter’s adult children and their spouses, raised conflict-of-interest concerns because the terms were seen as favorable to insiders.
- H&R said it will respect the vote, remain a public REIT, begin a board refreshment process that includes CEO succession planning, retroactively pay monthly dividends and declare a special cash distribution of about CA$2.30 per unit before year-end.
- The defeat, driven by coordinated pension-fund and asset-manager opposition plus negative proxy-adviser recommendations, leaves the consortium including GO Residential, Blackstone, Crestpoint and PSP with no immediate path to close the deal and signals tougher scrutiny of related-party transactions in future real estate deals.