Morguard North American Residential REIT Completes Acquisition Of Six Multi-Unit Residential Assets In The U.S. For US$218 Million
MISSISSAUGA, ON, April 19, 2013 /CNW/ - Morguard North American Residential Real Estate Investment Trust (TSX: MRG.UN) (the "REIT") is pleased to announce that it has completed the purchase of six multi-unit residential properties from an institutional fund sponsored by Pearlmark Real Estate Partners, L.L.C. ("Pearlmark") for US$218 million (excluding closing costs). This acquisition was previously announced by the REIT on January 9, 2013.
The six properties acquired are residential apartment and townhome complexes comprised of 1,793 suites located in Denver, Colorado, Tampa, Florida, Cary, North Carolina and Atlanta, Georgia. The properties are best-in-class low rise, enclave assets with structured and surface parking, modern leasing centers and amenity packages with a weighted average age from construction of 11 years.
In connection with the purchase of four of the six acquired properties the REIT assumed in-place mortgage financing of US$81.8 million (weighted average interest rate of 4.86% with a weighted average term to maturity of 4.6 years). For the remaining two properties, the REIT, at closing, entered into first mortgage financing arrangements in an aggregate amount of US$57.7 million (weighted average interest rate of 3.51%) for terms of 10 years.
The REIT is expected to complete the acquisition of an additional six multi-unit residential assets, from Pearlmark, by the end of May 2013. With the closing of the initial six properties from Pearlmark, the REIT owns interests in a total of 9,201 suites in Canada and the U.S. valued at approximately $1.2 billion. After closing the final portion of the Pearlmark acquisition the REIT will own interests in a total of 11,160 units in Canada and the U.S valued at approximately $1.4 billion."These investments are strategic to the REIT's ongoing success of acquiring institutional quality assets resulting in dependable income for unitholders," said Rai Sahi, Chief Executive Officer, Morguard North American Residential REIT. "We are on a clear path to execute our U.S. growth strategy in 2013." About Morguard North American Residential Real Estate Investment Trust Morguard North American Residential REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 14 Canadian residential apartment buildings and 18 U.S. residential walk-up garden communities consisting of 9,201 residential suites that are located in Alberta, Ontario, Colorado, Florida, Georgia, Louisiana and North Carolina. SOURCE Morguard North American Residential Real Estate Investment Trust
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