St. Albert's Centre, one of PRimaris' properties.

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DOWNSVIEW, ONTARIO—The boards of locally based H&R REIT and rival retail trust Primaris have approved H&R’s $1.3-billion acquisition offering. The bid, which awaits the approval of stockholders for both parties, was raised from $700 million to $1.28 billion cash.

The new bid was, in the words of a company statement, “facilitated by the inclusion of the KingSett Capital-led consortium.” KingSett, one of Canada’s leading private equity investors, had previously withdrawn as a rival bidder.

H&R is looking to take on Primaris’ operating platform along with 25 shopping centers. The total value of the deal is approximately $3.1 billion, at an overall 5.6% cap rate.

But KingSett stands to gain more than bragging rights. The firm will acquire the remaining 18 properties in the Primaris portfolio. That’s valued at roughly $1.9 billion. will provide updates as they occur.