Morguard REIT Announces Normal Course Issuer Bid

TORONTO , Jan. 27 /CNW/ - Morguard Real Estate Investment Trust (TSX: MRT.UN) ("Morguard") announced today that the Toronto Stock Exchange has accepted the notice filed by Morguard of its intention to make normal course issuer bid through the facilities of the TSX.

The notice provides that Morguard may, during the twelve month period commencing January 28, 2010 and ending January 27, 2011 , purchase for cancellation on the Toronto Stock Exchange up to 3,032,584 units ("Units) in total, being approximately 10% of the public float of the issued and outstanding Units. Additionally, Morguard may purchase for cancellation up to $10,350,000 principal amount of the 6.50% Convertible Unsecured Debentures due September 30, 2014 (TSX:MRT.DB) ("Debentures"), being 10% of outstanding Debentures.

The price which Morguard will pay for any such Units will be the market price at the time of acquisition. The actual number of Units and Debentures which may be purchased and the timing of any such purchases will be subject to compliance with the TSX guidelines.

Under the current normal course issuer bid due to expire January 27, 2010 , Morguard purchased 1,233,907 Units for cancellation during the last twelve months at an average cost per unit of $10.48 . As of January 20, 2010 there were 56,836,390 Units of Morguard outstanding. Morguard's average daily trading volume for the prior six months is 29,351. Additionally, as of January 20, 2010 there were $103,500,000 principal amount Debentures of Morguard outstanding. Morguard's average daily trading volume for the prior six months is $576,071 .

Morguard believes that its Units have been trading in a price range which does not adequately reflect the value of such Units in relation to the business of Morguard and its future business prospects. As a result, depending upon future price movements and other factors, Morguard believes that its outstanding Units may represent an attractive investment for itself. Furthermore, the purchases are expected to benefit all persons who continue to hold Units by increasing their equity interest in Morguard. All Units and Debentures purchased by Morguard under the normal course issuer bid will be cancelled.

Morguard 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.

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For further information: Tim Walker, Chief Financial Officer, Morguard Real Estate Investment Trust, 55 City Centre Drive, Suite 1000, Mississauga, ON, L5B 1M3, [phone], Web site: www.morguardreit.com