An H&R REIT subsidiary has tentatively secured US$52 million through a development trust designed to fund two Florida multi-family real estate projects.

Plans call for Toronto-based H&R to buy the projects once they are developed.

Lantower Residential Development Trust announced that it has received expressions of interest and commitments that, altogether, are expected to achieve the maximum $52-million offering amount. The offering is expected to close Wednesday.

The trust was created by H&R’s Texas-based subsidiary Lantower Residential LP to expedite the development of the two Florida multi-family projects, which are valued at US$210 million. The projects are located in Largo, which is part of the Tampa market, and Kissimmee in the Orlando area.

Altogether, the projects will comprise 601 units.

H&R has agreed to provide two land parcels for the projects and invest up to an additional US$10 million if the minimum offering size of US$42 million is achieved. Thomas Hofstedter, H&R’s executive chairman and CEO, said previously that the REIT expects to acquire the properties after they are developed.

Toronto-based CIBC World Markets is serving as the sole agent for the offering. H&R will not receive any proceeds from the deal.