Morguard North American Residential REIT Announces Public Offering of $60 Million of Trust Units

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

MISSISSAUGA, ON, Dec. 15, 2016 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the "REIT") (TSX:MRG.UN) announced today that it has reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets and TD Securities (collectively, the "Underwriters"), to issue to the public, subject to regulatory approval, on a bought deal basis, 4,370,000 trust units (the "Units") at a price of $13.75 per Unit representing gross proceeds of $60,087,500 (the "Offering"). The REIT has granted the Underwriters an over-allotment option, exercisable at any time up to 30 days after closing of the Offering, to acquire additional Units up to the lesser of 655,500 Units and the Underwriters' respective "over-allocation position" as at the closing date.

As part of the transaction, Morguard Corporation has agreed to purchase approximately $10 million of the Units being offered, being 730,000 Units, at the offering price. Morguard Corporation currently holds an approximate 48.7% effective interest in the REIT through ownership of Units and Class B LP Units. Upon closing of the Offering, Morguard Corporation will hold an approximate 46.0% effective interest in the REIT through ownership of Units and Class B LP Units (45.4%, assuming the exercise in full of the Underwriters' over-allotment option). 

The net proceeds from the Offering will be used to fund future acquisitions, repay debt and for general trust purposes. 

The REIT will, by December 21, 2016, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, excluding Quebec, a preliminary short form prospectus relating to the issuance of the Units. Closing of the Offering is expected to occur on or about January 9, 2017.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States or to, or for the account or benefit of, U.S. Persons.

About Morguard North American Residential REIT
The REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 15 Canadian residential apartment communities, located in Alberta and Ontario, and 31 U.S. low-rise and mid-rise, garden-style apartment communities located in Alabama, Colorado, Florida, Georgia, Louisiana, North Carolina and Texas consisting of more than 13,000 residential suites.

Forward-Looking Information
Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties. Statements contained herein that are not based on historical or current fact, including without limitation, statements containing the words "anticipates", "believes", "may", "continue", "estimate", "expects" and "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 REIT 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 REIT; and other factors referred to in the REIT's filings with Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Morguard Residential REIT does not assume the obligation to update or revise any forward-looking statements.

SOURCE Morguard North American Residential Real Estate Investment Trust

Morguard North American Residential REIT, K. Rai Sahi, Chief Executive Officer, [phone]; or Morguard North American Residential REIT, Robert D. Wright, Chief Financial Officer, [phone]

Related Links

www.morguard.com