Morguard REIT acquires 50% interest in enclosed regional shopping centre in
Grande Prairie, Alberta

TSX: MRT.UN

MISSISSAUGA, ON, May 5 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today announced that the Trust has entered into an agreement with a wholly-owned subsidiary of Morguard Corporation to acquire a 50% interest in Prairie Mall, a market dominant, single level enclosed regional shopping centre located in Grande Prairie, Alberta. The transaction is anticipated to close during the second quarter.

The Property is anchored by a 112,500 square foot Zellers department store and contains in aggregate 295,000 square feet of leasable area. The property is currently ninety-seven (97%) percent occupied.

Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 50 high quality retail, office and industrial properties in Canada with an approximate asset book value of $1.2 billion and approximately 7.8 million square feet of leaseable space.

Morguard Corporation is a real estate company, which owns a diversified portfolio of 101 retail, multi-unit residential, office and industrial properties comprising 10,294 multi-unit residential suites approximately 6.4 million square feet of commercial leasable space. Morguard Corporation owns a 45.5% interest in Morguard REIT.

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For further information: Mr. K. (Rai) Sahi, Chief Executive Officer, Mr. Tim Walker, Chief Financial Officer, Morguard Real Estate Investment Trust, 55 City Centre Drive, Suite 1000, Mississauga, ON, L5B 1M3, T: [phone], F: [phone], Email: [email protected], [email protected], Website: www.morguardreit.com