/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES./
MISSISSAUGA, ON,
April 9, 2012 /PRNewswire/ - Morguard
Corporation (TSX: MRC) and Morguard North American Residential Real
Estate Investment Trust (the "REIT") announced today that the REIT
has filed, and obtained a receipt for, a final prospectus for its
initial public offering of 7,500,000 trust units with the
securities commissions of all provinces and territories in
Canada. The trust units will be
issued at a price of $10.00 per unit
and are expected to provide holders of trust units with an annual
yield of approximately 6.0%. Gross proceeds of the offering are
expected to be approximately $75
million.
The REIT has granted to the underwriters of the
offering an option to purchase up to approximately an additional
750,000 trust units at a price of $10.00 per unit for a period of 30 days after
closing of the offering and, if exercised in full, will increase
the total gross proceeds of the offering to approximately
$82.5 million.
The offering is being underwritten by a
syndicate of underwriters co-led by RBC Capital Markets and TD
Securities, and including CIBC, BMO Capital Markets, Scotiabank,
HSBC Securities (Canada) Inc.,
National Bank Financial Inc., Canaccord Genuity Corp. and Dundee
Securities Ltd.
The Toronto Stock Exchange (the "TSX") has
conditionally approved the listing of the trust units under the
symbol "MRG.UN", subject to fulfilling all of the requirements of
the TSX.
The offering is expected to close on
April 18, 2012. On closing of the
initial public offering, it is expected that Morguard Corporation
(collectively, with its affiliates, "Morguard") will directly or
indirectly hold a 69.7% interest in the REIT (67.6% if the
over-allotment option is exercised in full). Morguard's experienced
multi-unit residential real estate team will externally administer
and operate the REIT's properties.
On closing of the offering, the REIT will use
the net proceeds of the offering to indirectly acquire interests in
a portfolio of 14 Canadian multi-unit residential properties and
three U.S. multi-unit residential properties currently operated and
owned or co-owned by Morguard (the "Initial Properties").
Morguard's interests in the following Initial Properties will be
acquired by the REIT:
Toronto,
Ontario
- 35 Thorncliffe Park Drive
- 43 Thorncliffe Park Drive
- 47 Thorncliffe Park Drive
- 49 Thorncliffe Park Drive
- 45 Generation Boulevard
Mississauga,
Ontario
- 1423 Mississauga Valley Boulevard
- 1477 Mississauga Valley Boulevard
- 1547 Mississauga Valley Boulevard
- 935 Dundas Street East
- 2869 Battleford Road
- 3665 Arista Way
- 30 Elm Drive East
Kitchener,
Ontario
Edmonton,
Alberta
Louisiana,
U.S.
- 1001 East Dale Street, New
Iberia
- 715 Marie Antoinette Street, Lafayette
- 3215 Knight Street, Shreveport
The REIT initially intends to make monthly cash
distributions of $0.05 per trust unit
to holders of trust units. The first distribution of the REIT will
be for the period from closing to May 31,
2012 and will be paid on or about June 15, 2012, in the amount of $0.07167 per trust unit assuming closing occurs
on April 18, 2012. Declared
distributions will be paid on or about the 15th day of each month
to unitholders of record at the close of business on the last
business day of the immediately preceding month. Copies of the
final prospectus will be available on SEDAR at www.sedar.com.
The trust units have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and may not be offered, sold or delivered, directly or
indirectly, in the United States
or to, or for the account or benefit of, ''U.S. persons'' (as
defined in Regulation S under the United States Securities Act of
1933, as amended). This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of the trust units
in the United States or to, or for
the account or benefit of, U.S. Persons.
About Morguard North American Residential
REIT
The REIT is an unincorporated, open-ended real
estate investment trust established under the laws of the Province
of Ontario. The REIT has been
formed to own multi-unit residential properties in Canada and the
United States. Concurrently with the completion of the
initial public offering of trust units, the REIT will indirectly
acquire, through a limited partnership, the Initial Properties
currently operated and owned or co-owned by affiliates of Morguard.
The Initial Properties consist of interests in 5,439 residential
suites that are located in Ontario, Alberta and Louisiana and have been assembled from
Morguard's portfolio of residential properties.
About Morguard
Morguard is a real estate investment company
whose principal activities include the acquisition, development and
ownership of commercial and multi-unit residential real estate
properties. Morguard currently owns interests in a diversified
portfolio of 101 office, industrial, retail and multi-unit
residential properties (including the Initial Properties) located
across Canada and the United States. As of December 31, 2011, Morguard's owned and managed
portfolio of retail, office and industrial properties consisted of
approximately 54.3 million square feet of gross leasable area and
had an estimated market value in excess of $11.4 billion. Morguard owns approximately 44.8%
of the units of Morguard Real Estate Investment Trust. Morguard
provides advisory and management services to institutional and
other investors through Morguard Investments Limited and Morguard
Residential.
Forward-Looking Statements
This press release may contain
forward-looking information within the meaning of applicable
securities legislation, which reflects Morguard's and the REIT's
current expectations regarding future events. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond
Morguard's or the REIT's control, that could cause actual results
and events to differ materially from those that are disclosed in or
implied by such forward-looking information. Such risks and
uncertainties include, but are not limited to, failure to complete
the initial public offering of trust units and related
transactions, and the factors discussed under "Risk Factors" in the
final prospectus of the REIT dated April 5,
2012. Neither Morguard nor the REIT undertake any obligation
to update such forward-looking information, whether as a result of
new information, future events or otherwise, except as expressly
required by applicable law.
For more information, visit Morguard's website
at www.morguard.com and the REIT's and Morguard's respective issuer
profiles at www.sedar.com.
SOURCE Morguard Corporation