MISSISSAUGA, ON, Feb. 3, 2016 /CNW/ - Morguard North American
Residential REIT ("the REIT") (TSX: MRG.UN) today announced that it
has purchased 160 Chapel Street, a rental apartment building in
Ottawa, ON, for $67 million, exclusive of closing costs. The
21-storey, 370 suite property is the first Canadian acquisition for
the Trust since its IPO in 2012.
The property features furnished and unfurnished suites with a
mix of bachelors and one and two bedroom floor plans. It has a
prime location in an existing multi-suite residential neighbourhood
with stable occupancy. There are four commercial units located on
the ground floor comprising of 7,010 square feet of retail.
The acquisition was financed by cash and a mortgage in the
principal amount of $38.6 million for
a term of ten years, bearing interest at 2.88% per annum.
"160 Chapel provides solid cash flow stability and is a good
investment in the Canadian market," said K.
Rai Sahi, Chairman and CEO, Morguard North American
Residential REIT. "The acquisition was strategic to the
REIT's focus to acquire high quality assets resulting in dependable
income for unitholders."
With the closing of the acquisition, the REIT owns interests in
more than 13,000 suites in North
America at 15 properties in Canada and 31 properties in the U.S.
About Morguard North American Residential REIT
The Trust is an unincorporated, open-ended real estate
investment trust which owns, through a limited partnership,
interests in a portfolio of 15 Canadian residential apartment
communities, located in Alberta
and Ontario, and 31 U.S. low-rise
and mid-rise, garden-style apartment communities located in
Alabama, Colorado, Florida, Georgia, Louisiana, North
Carolina and Texas.
For more information, please visit Morguard.com.
SOURCE Morguard North American Residential Real Estate
Investment Trust