Morguard Corporation Acquires LEED Gold Multi-Family Residential
Complex in Chicago, IL: Transaction Worth US$300 Million
MISSISSAUGA, ON, Nov. 30, 2012 /CNW/ - Morguard Corporation (TSX:
MRC) ("Morguard") today announced that it has finalized an
agreement to purchase, through a wholly-owned subsidiary, a 100%
freehold interest in Alta at K Station, a LEED Gold Certified high
rise residential rental complex in Chicago, IL. The property comprises two
towers built on an eight-level parking and retail podium with 848
residential units, 700 above-grade parking stalls and 12,000+ SF of
high-street retail. The acquisition is expected to close on
or about December 27, 2012 and
conditions, other than customary closing conditions, have now been
satisfied.
Alta at K Station, located at 555 West Kinzie Street in
Chicago's West Loop, sits directly
on the city's urban rail system on a 1.7 acre site. The 37
storey and 41 storey towers were completed for occupancy in 2010
and currently have an occupancy rate of about 94%.
Morguard will assume management of the complex on March 1, 2013.providing all asset management and
property management services to support this long-term
investment.
Alta at K Station will be purchased free and clear of financial
encumbrances for total consideration of approximately US$300 Million (excluding closing costs).
Morguard expects to finance the purchase price with: (i) a mortgage
in the principal amount of approximately US$200 million for a term of ten years, bearing
interest at 3.29% per annum; (ii) and other available sources of
funds.
"This opportunity allows Morguard Corporation to expand its
footprint in the U.S. and execute on our U.S. growth strategy to
acquire high-quality core assets," said Rai
Sahi, Chief Executive Officer, Morguard Corporation. "We're
building on our successful track record of ownership and management
of real assets to deliver shareholder value. "
In a separate transaction earlier this month, Morguard acquired
a 95% equity interest in the Toronto Airport Marriott Hotel.
The full service hotel located on five+ acres at Pearson
International Airport in Ontario
features 424 rooms, a 26,000 SF banquet facility and a 500+ stall
car park. The opportunity augments Morguard's current direct
and indirect hotel investments. Additionally, Morguard Real
Estate Investment Trust (TSX: MRT.UN) ("Morguard REIT"), announced
on October 31, 2012 that it had
acquired 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 purchase of Alta at K Station brings the total value of
acquisitions by the Morguard group of companies to more than
$700 Million in the fourth quarter of
2012.
About Morguard
Morguard is an expert in North American real
estate ownership, investment and management. With a
strategic focus on high-quality assets and
diversification, Morguard has a proven track record of
realizing the potential of real estate through consistent
investment performance. Morguard has more than
$12 billion of assets owned and under
management. The integrated real estate services company
manages its own real estate portfolio, and also invests and manages
on behalf of third-party institutional and private real estate
investors. Morguard offers integrated real estate services,
including investment management, asset management and property
management.
Morguard Corporation also owns a 42.8% interest in Morguard Real
Estate Investment Trust (TSX: MRT.UN) and a 56.1% effective
interest in the Morguard North American Residential Real Estate
Investment Trust (TSX: MRG.UN).
SOURCE Morguard Corporation