H&R REIT has acquired a one-third interest in ECHO Realty LP, which has a portfolio that consists of five property types: 160 retail assets, four office buildings, six industrial properties, four retail development projects, and two land parcels. The 176 properties total approximately 7.4 million square feet and is expected to generate in excess of $84 million in net operating income annually with an average remaining lease term of 12.9 years. The portfolio value amounts to approximately $1.165 billion at a weighted average cap rate of 7.3 per cent.
Since March 2000, ECHO focused on two primary areas of business: (i) developing and owning a core portfolio of real estate, tenanted by Giant Eagle, Inc. (“Giant Eagle”), the leading grocer in the western Pennsylvania and eastern Ohio regions operating under the Giant Eagle, Market District, GetGo and Good Cents banners; and (ii) developing and selling shopping centres anchored by other large national retailers throughout the Eastern United States.
H&R REIT will have the right to appoint two of the six ECHO board members. The proceeds from this transaction will be used by ECHO to further expand its retail portfolio by acquiring additional retail properties in the Eastern United States.