MISSISSAUGA, ON, May 8, 2015 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today announced a property and leasing update.
The Trust has finalized lease arrangements with GoodLife Fitness for a new 24/7, 75,000 square foot club at Parkland Mall in Red Deer, AB, scheduled to open in the spring of 2016. Located in the former Sears store the club model will feature a GoodLife Fitness and Fit4Less by GoodLife in a unique side-by-side format –only the second of its kind in Canada.
Additionally, Canadian Tire has reached an agreement to assume the lease on the former Target store at Aurora Centre, Aurora, ON. Wal-Mart meanwhile has agreed to assume the former Target lease at Southdale Centre, Winnipeg, MB. The deals are subject to approval by the court appointed monitor.
"GoodLife Fitness, Canadian Tire and Wal-Mart are all high caliber tenants and are expected to increase foot traffic from primary and secondary trade areas benefiting existing tenants," said Rai Sahi, President and Chief Executive Officer, Morguard REIT. "We will continue to work to realize further opportunities for new retailers at these properties."
The Trust has received notice from Target Canada that they have disclaimed leases in three properties owned/co-owned by the Trust. In the near term, the leases are still indemnified by Target's U.S. parent. The properties disclaimed are Prairie Mall, Grand Prairie, AB (50% co-ownership), Shoppers Mall, Brandon, MB, and Cambridge Centre, Cambridge, ON. These stores represent 0.3 million square feet of gross leasable area and gross annualized revenue of $2.9 million.
Subsequent to receiving the disclaimer notices, the Trust has commenced negotiations with potential retailers to improve the tenant mix and tenant covenant.
This announcement confirms the resolution of five of the Trust's original Target locations.
About Morguard Real Estate Investment Trust
The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 49 high quality retail, office and industrial income producing properties in Canada consisting of approximately 8.6 million square feet of leasable space.
SOURCE Morguard Real Estate Investment Trust
For further information: Pamela McLean, Chief Financial Officer, Tel: 905.281.4800 or John Levac, Vice President, Asset Management, Tel: 905.281.4800.