/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR OVER UNITED
STATES WIRE SERVICES/
MISSISSAUGA, ON, July 12, 2017 /CNW/ - Morguard North
American Residential Real Estate Investment Trust (the "REIT")
(TSX: MRG.UN) announced today an update on the status of various
investment and financing transactions.
On July 10, 2017, the REIT closed
on the acquisition of a 515-suite apartment building in
Chicago for $287.5 million (US$222.5
million). Coast at Lakeshore East is a recently built,
urban high-rise rental apartment building located in a prime
Chicago submarket, with
spectacular views of the Chicago River, Millennium Park and the
Chicago skyline. The building is a
LEED Silver candidate, offers 19,000 square feet of indoor and
outdoor amenity space and an additional 18,000 square feet of
commercial retail space. Concurrent with the acquisition, financing
of $158.3 million (US$122.5 million), with a fixed term of eight
years and an interest rate of 3.49%, was completed.
On July 6, 2017, the REIT closed
on the acquisition of a newly built, 104-suite mid-rise apartment
building located in the Greater
Washington D.C. suburb of Falls
Church, Virginia for the purchase price of $55.7 million (US$43
million). Northgate at Falls
Church includes 32,000 square feet of high street commercial
space and modern amenity space, including community courtyards with
patio fireplace and grill, fitness center, clubroom and garage
parking. The property was completed in 2014 and is subject to
a long-term land lease, with a fixed price land purchase option
available in 12.25 years. Concurrent with the acquisition,
financing of $30.7 million
(US$23.7 million), with a fixed term
of 12.25 years and an interest rate of 4.05%, was completed.
On June 1, 2017, the REIT waived
conditions on the acquisition of a 492-suite apartment community
with a purchase price of US$129
million. Fenestra Apartments, located at Rockville
Town Square, Rockville, Maryland
is a multi-building, 6-storey complex with high-end condo-style
amenities, completed in 2008. Fenestra is located near public
transportation and at the social and cultural hub of the
area. Closing is targeted for the third quarter of 2017.
Additionally, on July 12, 2017,
the REIT closed on the disposition of four properties comprising
1,329 suites located in Mobile,
Alabama for $89.3 million
(US$70.1 million). The four
properties in the REIT's Alabama
portfolio were constructed between 1970 and 1978 and have no
mortgage debt.
"We are excited about these acquisitions because they are
located in urban growth markets and, being recently constructed,
will mitigate capital risk for the REIT. The sale of the
Alabama properties is consistent
with our strategy to opportunistically dispose of non-core assets,"
said Rai Sahi, Chief Executive
Officer of the REIT. "We continue to focus on improving the
quality of the REIT's cash flow within North America and maximizing long-term value
for unitholders."
During June 2017, the REIT also
completed $81.3 million (US$60.9 million) of refinancing secured by three
of its existing properties, located in Colorado, Georgia and Florida, at a weighted average interest rate
of 3.84% and a weighted average term to maturity of 10 years.
The refinancings resulted in $26.6
million (US$20.0 million) of
additional mortgage proceeds on the maturing loans, which had a
weighted average interest rate of 4.46%. The REIT has now completed
financing arrangements on all mortgages scheduled to mature during
2017.
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 29 U.S. low-rise and mid-rise,
garden-style apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North
Carolina and Virginia
consisting of nearly 13,000 residential suites.
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 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, uncertainties and other factors that may
cause the actual results, events or developments to be materially
different from any future results, events or developments expressed
or implied by such forward-looking statements. Such factors
include, among others, the following: general economic and business
conditions, both nationally and in the regions in which the REIT
operates; changes in business strategy or development/acquisition
plans; environmental exposures; financing risk; existing
governmental regulations and changes in, or the failure to comply
with, governmental regulations; liability and other claims asserted
against the REIT; and other factors referred to in the REIT's
filings with Canadian securities regulators. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. The REIT does not assume the
obligation to update or revise any forward looking statements.
SOURCE Morguard North American Residential Real Estate
Investment Trust