Crestpoint Real Estate Investments has acquired a Canadian 24-property portfolio on behalf of its closed-end opportunistic real estate strategy fund.

Crestpoint’s acquired portfolio comprises 22 retail properties and two office assets totalling approximately one million square feet. The retail component includes 15 single-tenant sites and seven grocery- and pharmacy-anchored centres, with assets located across Manitoba, Quebec and Ontario.

The seller was not disclosed but, around the same time, H&R REIT announced that it closed on the sale of a similar number, and types, of assets, that Crestpoint said it bought. H&R mentioned the sale of a specific Toronto property that was among Crestpoint’s two office purchases. And, Crestpoint’s second acquired office asset matched the description of the second one that H&R said it sold.

Crestpoint’s newly acquired retail properties are 100% leased and anchored by essential-service tenants in grocery, pharmacy and home improvement, including Shoppers Drug Mart, Sobeys, Walmart, Metro and RONA.

The two office assets include a class A building at 145 Wellington Street West in Toronto’s financial core, located near the subway and tenanted by a mix of federal government, non-profit, engineering and insurance occupiers. That was the property H&R mentioned as being among its divestments.

Crestpoint said current rental rates at the property remain below market levels, offering potential for income growth over time.

The second office property is a fully occupied, approximately 75,000-sf single-tenant building on a 3.5-acre site in Markham, Ont., near Warden Avenue and Highway 407. Crestpoint did not provide the address. But this property is one that matches the description H&R’s second divested office asset at 88 McNabb Street in Markham.

Crestpoint acquired a 100% interest in the retail-office portfolio, marking the fourth acquisition for its Opportunistic Real Estate Strategy, which closed in December 2025. The fund has already deployed more than 70% of its committed equity, said Crestpoint.

In July 2024, The Globe and Mail reported that Crestpoint, U.S. investment giant Blackstone, the Public Sector Plan Investment Board (PSP) and Crestpoint were in talks to acquire H&R assets. But Crestpoint emerged as the sole buyer.

Crestpoint’s acquisition of the full ownership interest came after H&R announced in November 2025 that it had agreed to sell numerous assets in Canada and the U.S. to multiple buyers.

Shortly after Crestpoint issued a news release, H&R announced the completions of the deals announced in November. The REIT said it closed on the sale of one Canadian retail asset, along with a Canadian 23-property retail portfolio, and the two aforementioned office buildings at 145 Wellington West in Toronto and 88 McNabb in Markham.

H&R announced that it has entered into a management contract to manage the 23 retail locations and two office properties.

H&R also closed on the sale of its non-managing 33.1% ownership interest in Echo Realty’s U.S. retail portfolio. The unidentified purchaser assumed liabilities of $421.5 million.

H&R said it obtained approximately $1.1 billion from all of the divestments and used $727 million in net proceeds to repay corporate debt.

The REIT anticipates that it will close on its previously announced agreement to sell the Hess office tower in Houston in February and the sale of three more Canadian retail assets in March.

The REIT also announced that, effective April 1, its subsidiary Lantower Residential will externalize its property-management operations and has entered into a master management agreement with Greystar.

“This strategic action is intended to enhance operating efficiency, improve cost structure, and increase strategic flexibility across the residential platform,” said H&R.

The transition to a third-party management model will yield cost savings of US$5 million, the REIT added.

“In addition, this structure allows Lantower Residential to evaluate and pursue multi-family investment opportunities in additional high-growth Sunbelt markets without incurring incremental start-up or platform-expansion costs, thereby improving capital allocation efficiency and scalability,” said H&R.

Greystar is expected to retain the majority of Lantower’s onsite property-management employees and key home-office associates, supporting operational continuity at the property level.

Emily Watson will remain in her role as Lantower’s chief operating officer, and Hunter Webb will continue to lead the development platform. Lantower expects to retain approximately 20 employees in asset management, development and accounting functions for its properties.

“The REIT believes this evolution of Lantower Residential’s operating model strengthens margin durability, enhances portfolio flexibility, and positions the platform for long-term value creation while maintaining high standards of service for residents,” said H&R.

H&R also announced that Matt Kingston, the REIT’s executive vice-president of development and construction, has left the organization to pursue other opportunities.

Pictured: Office building in Toronto’s financial core acquired by Crestpoint.

Photo: CNW Group/Crestpoint