TSX: MRT.UN
MISSISSAUGA, ON, Oct. 30, 2012 /CNW/ - Morguard Real Estate
Investment Trust ("Morguard REIT" or the "REIT") (TSX: MRT.UN),
announced today that it has finalized an agreement to purchase a
100% freehold interest in Penn West Plaza, Calgary, a Class A office property that is
comprised of two office towers with 621,628 square feet of gross
leasable area, 379 parking spaces and 17,766 square feet of prime
retail space. The acquisition is expected to close on or about
October 31, 2012 and conditions,
other than customary closing conditions, have now been
satisfied.
Penn West Plaza (207 & 213-9th Avenue S.W.)
is located in the Central Business District of downtown
Calgary. Both Class A office
towers (other than ancillary retail space) are 100% leased to Penn
West Petroleum Ltd. (NYSE: PWE TSX: PWT), and secured by a
long-term net lease, with a remaining lease term of 12 years.
Penn West Plaza will be purchased free and clear
of financial encumbrances for total consideration of approximately
$374.3 million (excluding closing
costs). The REIT expects to finance the purchase price with: (i) a
mortgage in the principal amount of approximately $210 million for a term of ten years, bearing
interest at 3.93% per annum; (ii) the net proceeds from the REIT's
offering of 4.85% convertible unsecured subordinated debentures,
due October 31, 2017, of
approximately $145.7 million; and
(iii) other available sources of funds.
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
(including the Penn West acquisition) 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