MRT.UN Morguard Real Estate Investment Trust

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Morguard Real Estate Investment Trust ("Morguard REIT" or the "REIT")
(TSX:MRT.UN), announced today that it has entered into an agreement with a
syndicate of underwriters, co-led by RBC Capital Markets and TD Securities Inc.,
with RBC Capital Markets acting as bookrunner, for the purchase by the
underwriters, on a bought deal basis, subject to regulatory approval, of $150
million aggregate principal amount of 4.85% convertible unsecured subordinated
debentures due October 31, 2017 (the "Debentures"). The Debentures are
convertible, at the option of the holder, into trust units of Morguard REIT at
$24.60 per trust unit. 


As part of the transaction, Morguard Corporation has agreed to purchase
approximately $50 million of the Debentures being offered. 


Morguard REIT will, by October 18, 2012, file with the securities commissions
and other similar regulatory authorities in each of the provinces and
territories of Canada, excluding Quebec, a preliminary short form prospectus
relating to the issuance of the Debentures. The offering is expected to close on
or about October 31, 2012. 


The net proceeds from the offering of Debentures (after deducting the
Underwriters' fee and estimated offering expenses) will be used, in part, to
fund an acquisition currently under negotiation, to fund future acquisitions,
for debt repayment and for general trust purposes.


Consistent with our past practices and in the normal course, we engage in
discussions with respect to possible acquisitions and have entered into an
acquisition agreement in respect of an office property, which is subject to a
number of conditions. There can be no assurance that any of these discussions
will result in a definitive agreement and, if they do, whether such acquisition
will be completed on the terms of such agreement or at all. We expect to
continue current discussions and actively pursue other acquisition and
investment opportunities.


This press release does not constitute an offer to sell, or the solicitation of
an offer to buy, any securities in any jurisdiction. The securities being
offered have not been and will not be registered under the U.S. Securities Act
of 1933 and state securities laws. Accordingly, the securities may not be
offered or sold to U.S. persons except pursuant to applicable exemptions from
registration requirements.


About Morguard REIT

Morguard REIT is a closed-end real estate investment trust, which owns a
diversified portfolio of 53 high quality retail, office and mixed use properties
in Canada with an approximate value of $2.2 billion and comprising approximately
8.5 million square feet of leaseable space.


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, the ability to complete potential acquisitions
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.

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