MISSISSAUGA, ON, Jan. 10, 2018 /CNW/ - Morguard Corporation ("Morguard") (TSX: MRC) announced today that the real estate company has purchased Capital East Business Centre, a two-building, small-bay industrial portfolio in Ottawa, ON. The acquisition was completed for a purchase price of $42.5 million, excluding taxes and transaction costs, and encompasses 243,000 square feet on 15.5 acres.
"With an in-demand location and market-leading features, the Capital East Business Centre is the best multi-tenant industrial facility in the Ottawa region," said K. Rai Sahi, Chairman and Chief Executive Officer of Morguard Corporation. "Acquisition opportunities like the Capital East Business Centre do not come up often, and we are delighted to add this exceptional property to our portfolio as part of our sustainable growth plan."
The acquisition increases Morguard's footprint in Ottawa, which has been amongst the strongest and most consistent real estate markets in Canada. In the Ottawa region, Morguard currently owns and/or manages approximately 4.8 million square feet of property, which allows for management synergies and reduced operating costs. The lack of developable industrial land and building restrictions due to the Ottawa Greenbelt has greatly limited the amount of new supply in the market, making Capital East Business Centre a highly sought after property.
The property is prominently situated on Polytek Street in the Canotek Business Park, a premier business park just east of the Ottawa downtown core. The location offers easy entry to the Queensway and Montreal Road, providing excellent regional travel in all directions.
The buildings were constructed in 2010 and 2015, with minimal capital expenditures forecast for the near future. The recent construction offers best-in-class features including clear heights of 28 feet and flexible unit configuration.
"This is a premier acquisition that supports Morguard's long-term strategy of investing in diversified, high-quality assets across North America," said Paul Miatello, Chief Financial Officer of Morguard Corporation. "This best-in-class asset in a strong market will provide steady cash flow and a solid return on investment."
Morguard Corporation is a major North American real estate 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), Morguard North American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH). Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $22.0 billion. For more information, please visit Morguard's website at www.morguard.com or follow us on LinkedIn.
SOURCE Morguard Corporation
For further information: K. Rai Sahi, Chairman and Chief Executive Officer, 905-281-3800; Paul Miatello, Chief Financial Officer, 905-281-3800 or email [email protected]