H&R REIT’s office investment era has moved closer to its end.

H&R announced that it has received $170 million in proceeds from a $180M vendor-takeback mortgage tied to its sale of 160 Elgin Street in Ottawa. The purchaser, Montreal-based Groupe Mach, provided a $10-million installment in July.

H&R is one of Canada’s largest REITs, with 28% of its $11.1 billion in assets weighted towards office. (As of June 30, 2023.)

H&R sold the 973,611-square-foot downtown Ottawa property to Mach for $277 million in April. The $180-million loan was a first mortgage. The REIT also provided Mach with a $30-million second vendor-takeback mortgage due to mature in 2028.

H&R said it will focus its investments on residential and industrial properties in Toronto, Montreal, Vancouver and high-growth U.S. sunbelt and gateway cities.