/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR OVER UNITED
STATES WIRE SERVICES/
TSX SYMBOL: MRT.UN
TORONTO,
Oct. 16, 2012 /CNW/ - 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.
SOURCE Morguard Real Estate Investment Trust