MISSISSAUGA, Feb. 4, 2016 /CNW/ - Morguard Corporation (TSX: MRC) ("Morguard") today announced that it has finalized an agreement to purchase a portfolio of three hotels for $33.5 million, excluding closing costs. The portfolio, located in Toronto and adjacent to Pearson International Airport, includes two hotels under the Marriott banner, Courtyard by Marriott and Residence Inn by Marriott, and an independently branded property, Hotel Carlingview Toronto Airport, for a total of 417 rooms.
"This acquisition is strategic to our existing ownership of Toronto Airport Marriot Hotel and will support growth of hotel NOI," said K. Rai Sahi, Chairman and CEO, Morguard Corporation. "Our investment and asset strategy in hotels will focus on creating value across our portfolio that now consists of 1,473 rooms at nine properties."
The acquisition was financed by cash and a $20 million credit facility.
Additionally, Morguard confirmed that it had met or expected to meet all conditions related to the assumption of asset management of Temple Hotels Inc. (TSX:TPH) and is working toward the transition date of April 1, 2016. Temple Hotels has a portfolio of 30 hotel properties, representing more than 4,000 rooms.
About Morguard Corporation
Morguard Corporation (TSX: MRC) is a major North American real estate and property management 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) and Morguard North American Residential REIT (TSX: MRG.UN). Morguard also provides real estate management services to institutional and other investors. Morguard's combined real estate portfolio is valued at $15.6 billion.
For more information, visit Morguard.com.
SOURCE Morguard Corporation
For further information: Morguard Corporation, K. Rai Sahi, Chief Executive Officer, T 905-281-3800; Beverley G. Flynn, Vice President, General Counsel, T 905-281-3800