Morguard Announces Strategic Sale of Hotel Portfolio

The transaction marks a significant milestone for Morguard's portfolio optimization.

MISSISSAUGA, ON, Jan. 8, 2024 /CNW/ - Morguard Corporation ("Morguard") (TSX: MRC) announced today an unconditional agreement to sell a portfolio of 14 high-quality hotels. This strategic move aligns with Morguard's commitment to optimize its real estate portfolio, focusing on core real estate investments, including office, industrial, retail, and multi-suite residential properties.

"It is an opportune moment to divest these properties given the current market demand for a hotel portfolio of this size and quality, as well as their enhanced market value."  said K. Rai Sahi, Chairman and Chief Executive Officer. "Morguard has strategically divested our hotel portfolio to align with our objectives of strengthening the company's balance sheet while owning a high-quality portfolio of income producing real estate."

The transaction will result in gross proceeds of $410.0 million, before customary adjustments and closing costs. Upon completion of the transaction, Morguard will repay first-mortgage debt totaling $48.7 million, providing the company with net proceeds of $361.3 million. The portfolio of hotels, featuring Marriott, Hilton, IHG and independent hotels, is located in major urban centers across Canada, including the Greater Toronto Area (specifically Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax, and Sudbury. Further information about the properties being sold can be found in the appended section of this press release. Morguard will retain ownership of two hotels: the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, Ontario and Inn at the Quay in New Westminster, British Columbia.

"The heightened level of financial flexibility provided by this transaction will empower us to strategically deleverage, which is important given the current interest rate environment, said Paul Miatello, Chief Financial Officer.

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2024.

About Morguard Corporation

Morguard Corporation is a major North American real estate and property management company. It has extensive retail, office, industrial, hotel and residential holdings owned directly and through its investment in Morguard Real Estate Investment Trust and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $18.6 billion. Please visit www.morguard.com or follow us on LinkedIn. 

HOTEL PORTFOLIO
Property	City	Province	Total Rooms
Courtyard Marriott Markham	Markham	ON	144
Residence Inn Marriott - Markham	Markham	ON	100
Courtyard Marriott Mississauga	Mississauga	ON	144
Hilton Garden Inn Toronto Airport West	Mississauga	ON	152
Cambridge Suites Mississauga	Mississauga	ON	100
Holiday Inn Express	Ottawa	ON	115
Towne Place Suites by Marriott	Sudbury	ON	105
Courtyard by Marriott Toronto Airport	Toronto	ON	168
Hotel Carlingview Toronto Airport	Toronto	ON	112
Residence Inn by Marriott Toronto Airport	Toronto	ON	137
Toronto Airport Marriott	Toronto	ON	424
Courtyard Marriott Vaughan	Vaughan	ON	144
Cambridge Suites Hotel Halifax	Halifax	NS	200
The Prince George Hotel	Halifax	NS	203
TOTAL HOTEL			2,248

SOURCE Morguard Corporation

K. Rai Sahi, Chairman and CEO; Paul Miatello, Chief Financial Officer, T 905-281-3800 or email [email protected]