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
For further information: Morguard North American Residential REIT, K. Rai Sahi, Chief Executive Officer, T 905-281-3800; Beverley G. Flynn, Vice President, General Counsel, T 905-281-3800