TSX: MRT.UN
MISSISSAUGA, ON, May 8, 2015 /CNW/ - Morguard Real Estate
Investment Trust ("the Trust") (TSX: MRT.UN) today announced a
property and leasing update.
The Trust has finalized lease arrangements with GoodLife Fitness
for a new 24/7, 75,000 square foot club at Parkland Mall in
Red Deer, AB, scheduled to open in
the spring of 2016. Located in the former Sears store the club
model will feature a GoodLife Fitness and Fit4Less by
GoodLife in a unique side-by-side format –only the second
of its kind in Canada.
Additionally, Canadian Tire has reached an agreement to assume
the lease on the former Target store at Aurora Centre, Aurora,
Ontario. Wal-Mart meanwhile has agreed to assume the former
Target leases at Southdale Centre, Winnipeg, MB. The deals are subject to
approval by the court appointed monitor.
"GoodLife Fitness, Canadian Tire and Wal-Mart are all high
caliber tenants and are expected to increase foot traffic from
primary and secondary trade areas benefiting existing tenants."
said Rai Sahi, President and Chief
Executive Officer, Morguard REIT. "We will continue to work
to realize further opportunities for new retailers at these
properties."
The Trust has received notice from Target Canada that they have
disclaimed leases in three properties owned/co-owned by the
Trust. In the near term, the leases are still indemnified by
Target's U.S. parent. The properties disclaimed
are Prairie Mall, Grand Prairie, AB (50% co-ownership),
Shoppers World, Brandon, MB, and
Cambridge Centre, Cambridge,
ON. These stores represent 0.3 million square feet of gross
leasable area and gross annualized revenue of $2.9 million.
Subsequent to receiving the disclaimer notices, the Trust has
commenced negotiations with potential retailers to improve the
tenant mix and tenant covenant.
This announcement confirms the resolution of five of the Trust's
original Target locations.
About Morguard Real Estate Investment Trust
The Trust is a closed-end real estate investment trust, which
owns a diversified portfolio of 49 high quality retail, office and
industrial income producing properties in Canada consisting of approximately 8.6 million
square feet of leasable space.
SOURCE Morguard Real Estate Investment Trust