/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR OVER UNITED
STATES WIRE SERVICES/
TORONTO,
Aug. 23, 2012 /CNW/ - Morguard North
American Residential Real Estate Investment Trust (the "REIT")
(TSX:MRG.UN) announced today that, due to increased investor
demand, it has amended the terms of its previously announced public
offering of trust units. The REIT has reached an agreement
with a syndicate of underwriters co-led by RBC Capital Markets and
TD Securities, with RBC Capital Markets acting as bookrunner
(collectively, the "Underwriters"), to issue to the public, subject
to regulatory approval, on a bought deal basis, 12,720,000 trust
units (the "Units") at a price of $11.85 per Unit (the "Offering") representing
gross proceeds of $150,732,000.
As part of the transaction, Morguard Corporation
has agreed to purchase approximately $50
million of the Units being offered, being 4,220,000 Units,
at the offering price. Morguard Corporation currently holds an
approximate 67.6% effective interest in the REIT through ownership
of all of the Class B LP Units of the limited partnership used to
acquire interests in multi-unit residential properties in
Canada and the United States. The REIT holds all
Class A LP units of the limited partnership. After the
offering Morguard Corporation will hold an approximate 56.2%
effective interest in the REIT through ownership of Units and Class
B LP Units.
The net proceeds from the Offering will be used
to repay indebtedness, to fund future property acquisitions, and
for general trust purposes.
The REIT will, by August
28, 2012, file with the securities commissions and other
similar regulatory authorities in each of the provinces and
territories of Canada a
preliminary short form prospectus relating to the issuance of the
Units. Closing of the Offering is expected to occur on or
about September 12, 2012.
The 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 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 indirectly
acquired from Morguard Corporation, through a limited partnership,
interests in a portfolio of 14 Canadian multi-unit residential
properties and five U.S. multi-unit residential properties
consisting of interests in 6,036 residential suites that are
located in Ontario, Alberta, Louisiana and Florida.
Forward-Looking Information
Certain information in this press release may
constitute forward-looking statements that involve a number of
risks and uncertainties, including statements regarding the outlook
for the REIT's business results of operations. Forward-looking
statements use the words "believe," "expect," "anticipate," "may,"
"should," "intend," "estimate" and other similar terms, which do
not relate to historical matters. Such forward-looking statements
involve known and unknown risks and uncertainties and other factors
that may cause the actual results to differ materially from those
indicated. Such factors include, but are not limited to, general
economic conditions, the availability of new competitive supply of
commercial real estate that may become available either through
construction or sublease, the REIT's ability to maintain occupancy
and to lease or re-lease space on a timely basis at current or
anticipated rates, tenant bankruptcies, financial difficulties and
defaults, changes in interest rates, changes in operating costs,
the REIT's ability to obtain adequate insurance coverage at a
reasonable cost and the availability of financing. The REIT
believes that the expectations reflected in forward-looking
statements are based on reasonable assumptions; however, the REIT
can give no assurance that actual results will be consistent with
these forward-looking statements. Except as required by applicable
law, the REIT disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise. Readers should be
cautioned not to place undue reliance on the forward-looking
statements.
SOURCE Morguard North American Residential Real Estate
Investment Trust