Dundee REIT, H&R REIT wrap roadshow for C$650 million mortgage bonds

By Cristal Cody

Prospect News, June 6 - Dundee Real Estate Investment Trust and H&R REIT wrapped a roadshow for an offering of C$650 million of first mortgage bonds and pricing is awaiting final documentation for an indenture, an informed bond source said on Tuesday.

The bonds due June 20, 2010 (provisional DBRS: A rating) are expected to price later in the week.

The bonds are set to price at a rate no higher than 3.45%.

Scotia Capital Inc. and TD Securities Inc. are the bookrunners.

The REITs announced in May they purchased Bank of Nova Scotia's Scotia Plaza complex in Toronto for C$1.27 billion.

Proceeds from the bond sale will be used to pay for the transaction, which is expected to close on June 20.

About C$433.3 million of the bonds will be allocated to Dundee, according to the company.

Toronto-based Dundee will keep a two-thirds interest in the property, while Downsview, Ont.-based H&R REIT will hold a one-third stake.

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