Morguard North American Residential REIT Announces Completion of its Previously Announced Public Offering of $103 Million of Trust Units

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TSX SYMBOL: MRG.UN

MISSISSAUGA, ON, Aug. 28, 2019 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today that it has completed its previously announced public offering with a syndicate of underwriters (the "Underwriters"), co-led by RBC Capital Markets and TD Securities, on a bought deal basis, of 5,226,200 trust units (the "Units") at a price of $19.75 per Unit representing gross proceeds of $103,217,450 (the "Offering"). The Offering included 150,000 Units issued pursuant to the partial exercise of the over-allotment option granted to the Underwriters.

As part of the transaction, Morguard Corporation purchased $25,062,750 of the Units being offered, being 1,269,000 Units, at the offering price. Morguard Corporation currently holds, indirectly, an approximate 44.8% effective interest in the REIT through ownership of Units and Class B LP Units.

The net proceeds from the Offering will be used to fund future acquisitions, for the repayment of debt and for general business purposes.

Copies of the REIT's short form prospectus are available on SEDAR at www.sedar.com.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States or to, or for the account or benefit of, U.S. Persons.

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 26 U.S. residential apartment communities (including one property under development) located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland consisting of more than 12,000 residential suites.

For more information, please visit www.morguard.com.

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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, proposed use of proceeds for the offering and the timing thereof. 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 and uncertainties and other factors that may cause the actual results to differ materially from those indicated. Such factors include, but are not limited to, general economic conditions, the availability of new competitive supply of commercial real estate that may become available either through construction or sublease, the REIT's ability to maintain occupancy and to lease or re-lease space on a timely basis at current or anticipated rates, tenant bankruptcies, financial difficulties and defaults, changes in interest rates, changes in operating costs, the REIT's ability to obtain adequate insurance coverage at a reasonable cost, the ability to complete potential acquisitions and the availability of financing. The REIT believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; however, the REIT can give no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, the REIT disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on the forward-looking statements. 

SOURCE Morguard North American Residential Real Estate Investment Trust

K. Rai Sahi, Chairman and Chief Executive Officer, Tel: [phone]; Christopher A. Newman, Chief Financial Officer, Tel: [phone]; Morguard North American Residential Real Estate Investment Trust, 55 City Centre Drive, Suite 1000, Mississauga, Ontario, L5B 1M3, www.morguard.com