/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR OVER UNITED
STATES WIRE SERVICES/
TORONTO,
March 15, 2013 /CNW/ - Morguard North
American Residential Real Estate Investment Trust (the "REIT")
(TSX: MRG.UN) announced today that it has completed its previously
announced public offering with a syndicate of underwriters, co-led
by RBC Capital Markets and TD Securities with RBC Capital Markets
acting as bookrunner, on a bought deal basis, of 8,270,000 trust
units (the "Units") at a price of $11.50 per Unit representing gross proceeds of
$95,105,000 and $60,000,000 aggregate principal amount of 4.65%
convertible unsecured subordinated debentures due March 30, 2018 (the "Debentures", and
collectively with the Units, the "Offering"). The Debentures
are convertible at the option of the holder into trust units of the
REIT at a conversion price of $15.50
per trust unit.
As part of the transaction, Morguard Corporation
purchased $10,005,000 of the Units
being offered, being 870,000 Units, at the offering price and
$5,000,000 aggregate principal amount
of the Debentures. Morguard Corporation currently holds an
approximate 48.8% effective interest in the REIT through ownership
of trust units and Class B LP Units of the limited partnership.
The net proceeds from the Offering will be used
to partially fund the acquisition of 3,752 multi-family residential
units in the U.S. for gross consideration of US$457.8 million, as previously announced on
January 9, 2013, and for general
trust purposes.
Copies of the REIT's short form prospectus are
available on SEDAR at www.sedar.com.
The Units and the Debentures 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 or the Debentures 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. Its trust units
and Debentures trade on the Toronto Stock Exchange under the ticker
symbols MRG.UN and MRG.DB, respectively. With a strategic
focus on the acquisition of high-quality multi-unit residential
properties in Canada and
the United States, the REIT
maximizes long-term unit value through active asset and property
management. Its portfolio consists of 7,408 residential suites (as
of February 19, 2013) located in
Ontario, Alberta, Louisiana and Florida, with an IFRS value of approximately
$997 million.
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
previously disclosed acquisition and 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 Real Estate Investment Trust