MISSISSAUGA, ON, Aug. 18, 2017
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
MISSISSAUGA, ON, Aug. 18, 2017 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the "REIT") (TSX:MRG.UN) and Morguard Corporation (the "Company") (TSX:MRC) announced today the acquisition of The Fenestra at Rockville Town Square ("The Fenestra"), a 492-suite apartment community in Rockville, MD. The acquisition was completed for a purchase price of $163.1 million (US$129 million). The entities will own the property on a 50/50 joint venture basis.
"The Fenestra's condo-quality amenities, recent construction and prominent location in the hub of a growing community make the property an excellent addition to our portfolio," said K. Rai Sahi, Chief Executive Officer of Morguard. "This acquisition supports our long-term strategy of investing in high-quality North American multi-suite residential assets that improve the quality of the cash flow while maximizing long-term investment returns for investors."
The Fenestra comprises three six-storey buildings in Rockville, MD, an urban growth market located within commuting distance of Washington, DC. Development of The Fenestra was completed in 2008, which will help mitigate capital expenditure risk.
The property is prominently located on Rockville Town Square, the social and cultural hub of Rockville. Residents of The Fenestra can walk to numerous restaurants, nightclubs and boutique shopping stores, or easily commute to Washington via the nearby Washington Metro.
Concurrent with the acquisition, financing of $89.7 million (US$70.95 million), with a fixed term of 10 years and an interest rate of 3.55%, was completed.
About Morguard North American Residential REIT
The REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 16 Canadian residential apartment communities, located in Alberta and Ontario, and 30 U.S. low-rise and mid-rise, garden-style apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland consisting of approximately 13,000 residential suites.
About Morguard Corporation
Morguard Corporation is a major North American real estate company. It has extensive retail, office, industrial, multi–suite residential, and hotel holdings owned directly, or through its investment in Morguard REIT (TSX: MRT.UN), Morguard North American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH). Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $21.9 billion.
SOURCE Morguard North American Residential Real Estate Investment Trust
View original content: http://www.newswire.ca/en/releases/archive/August2017/18/c5897.html
K. Rai Sahi, Chairman and Chief Executive Officer, 905-281-3800; Robert D. Wright, Chief Financial Officer of the REIT, 905-281-3800, Paul Miatello, Chief Financial Officer of the Company, 905-281-3800 or email firstname.lastname@example.orgCopyright CNW Group 2017