/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
TORONTO, Sept. 12, 2012 /CNW/ - Morguard North American Residential Real
Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today that
the REIT has completed its previously announced public offering, on a
bought deal basis, of 12,720,000 trust units (the "Units") at a price
of $11.85 per Unit (the "Offering") representing gross proceeds of
$150,732,000. The Offering was underwritten by a syndicate of
underwriters co-led by RBC Capital Markets and TD Securities, and
including CIBC, BMO Capital Markets, Scotiabank, HSBC Securities
(Canada) Inc., Dundee Securities Ltd. and National Bank Financial Inc.
The REIT intends to use the net proceeds of the Offering to repay
indebtedness, fund future acquisitions and for general trust purposes.
As part of the transaction, Morguard Corporation purchased approximately
$50 million of the Units being offered, being 4,220,000 Units, at the
offering price. Morguard Corporation currently holds an approximate
56.1% effective interest in the REIT through ownership of Units and all
of the Class B LP Units of the limited partnership.
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
established under the laws of the Province of Ontario. The REIT has
been formed to own multi-unit residential properties in Canada and the
United States. The REIT indirectly owns multi-unit residential
properties in Canada and the United States, consisting of interests in
6,376 residential suites that are located in Ontario, Alberta,
Louisiana and Florida.
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 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 residential 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 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 should be cautioned not to place undue reliance on
the forward-looking statements.
SOURCE: Morguard North American Residential Real Estate Investment Trust
For further information:
K. (Rai) Sahi
Chief Executive Officer
Beverley G. Flynn
General Counsel & Secretary