MISSISSAUGA, ON, Nov. 15, 2021 /CNW/ - Morguard North American
Residential REIT (the "REIT") (TSX: MRG.UN) today announced it has
closed the CMHC-insured financing on four properties, located in
Toronto and Mississauga, Ontario, providing gross mortgage
proceeds of $194.2 million, at a
weighted average interest rate of 2.72% and for a weighted average
term of 10.5 years.
Concurrently, the REIT redeemed the Class C limited partnership
units ("Class C LP Units") of Morguard NAR Canada Limited
Partnership held by Morguard Corporation ("Morguard"). The Class C
LP Units were entitled to priority distributions in satisfaction of
financial obligations related to the Retained Debt (defined below)
and any associated tax payable by Morguard. The Retained Debt had a
mortgage balance at maturity associated with the refinanced
properties of $74.2 million at a
weighted average interest rate of 3.97%, resulting in net proceeds
of $120.0 million, before financing
costs and any associated tax payable.
Morguard retained, as primary obligor, the mortgages on four
properties ("Retained Debt") that were sold to the REIT and also
retained the deferred financing costs associated with the Retained
Debt. Morguard remained responsible for the interest and principal
payments on the Retained Debt, and the Retained Debt was secured by
a charge on each of the properties. As consideration for the
Retained Debt, Morguard received Class C LP Units on which
distribution payments were made in an amount expected to be
sufficient to permit Morguard to satisfy amounts payable with
respect to: (i) the principal and interest under the Retained Debt;
and (ii) the amount of tax that is due and payable that is
reasonably attributable to any distributions on the Class C LP
Units.
About Morguard North American Residential REIT
The REIT is an unincorporated, open-ended real estate investment
trust established under and governed by the laws of the Province of
Ontario. The Units of the REIT trade on the Toronto Stock
Exchange under the ticker symbol MRG.UN. With a strategic
focus on the acquisition of high-quality multi-suite residential
properties in Canada and
the United States, the REIT
maximizes long-term Unit value through active asset and property
management. Its portfolio consists of 13,275 residential suites (as
of November 15, 2021) located in
Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North
Carolina, Virginia and
Maryland with an appraised value
of approximately $3.2 billion at
September 30, 2021. For more
information, visit the REIT's website at www.morguard.com.
SOURCE Morguard North American Residential Real Estate
Investment Trust