MISSISSAUGA, ON, March 30, 2020 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) announced today that it has concluded formal discussions with Obsidian Energy Ltd ("Obsidian") regarding a lease amendment for its Penn West Plaza tenancy.
The Trust and Obsidian have agreed final terms and executed definitive documentation that is summarized as follows:
- Obsidian will receive a rent abatement which adjusts their obligation to $833,333.33 per month starting February 1, 2020, net of sublease obligations; and
- The Trust will indemnify Obsidian in regard to the sublease income.
It is estimated that this will represent an annual reduction in the Trust's net operating income in the range of $6.5 - $7.0 million.
Penn West Plaza is a 636,500 square foot Class A office complex, consisting of two towers, located at 207 and 215 9th Avenue, Calgary, Alberta. Both office towers are fully leased to Obsidian Energy Ltd. until January 2025.
About Morguard Real Estate Investment Trust
Morguard Real Estate Investment Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 48 retail, office and industrial income producing properties in Canada, comprising approximately 8.5 million square feet of leasable space, with a value of $2.9 billion.
Statements contained herein that are not based on historical or current fact, including without limitation, statements containing the words "anticipate", "believe", "may", "continue", "estimate", "expects", "will" and words of similar expression, constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Trust operates; changes in business strategy or development/acquisition plans; environmental exposures; financing risk; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the Trust; and other factors referred to in the Trust's filings with Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Trust does not assume the obligation to update or revise any forward-looking statements.
SOURCE Morguard Real Estate Investment Trust
For further information: Morguard Real Estate Investment Trust: K. Rai Sahi, President and Chief Executive Officer, T 905-281-4800; Andrew Tamlin, Chief Financial Officer, T 905-281-4800