MISSISSAUGA, ON, Nov. 21, 2013 /CNW/ - Morguard Investments Limited
("Morguard") announced today that it has agreed to purchase three
regional shopping centres in Canada on behalf of its clients,
Healthcare of Ontario Pension Plan ("HOOPP") and Morguard Real Estate
Investment Trust (the "REIT") (TSX: MRT.UN) from Canada Pension Plan
Investment Board ("CPPIB") for a purchase price totaling more than $500
million CDN (excluding closing costs).
The acquisition is expected to close on or about December 12, 2013 and
conditions, other than customary closing conditions, have now been
satisfied.
HOOPP will acquire a 100 percent freehold interest in two Ontario retail
properties including Intercity Shopping Centre located in Thunder Bay
and New Sudbury Shopping Centre located in Sudbury. Intercity Shopping
Centre is a 460,349 square feet market dominant single level enclosed
regional shopping centre built in 1982, renovated and expanded from
1994 to 1996, and anchored by Sears and Target department stores. New
Sudbury Centre is a 567,673 square foot market dominant single level
enclosed regional shopping centre built in 1956, most recently
renovated in 2005, and anchored by a Wal-Mart Supercentre and a Sears
department store.
"Market dominant retail assets, such as these two commercial shopping
malls, align with our commitment to pursue high-quality assets for
HOOPP's real estate portfolio," said Michael Catford, HOOPP's VP, Real
Estate. "Real estate is an important part of how HOOPP delivers on the
pension promise for its members - it delivers steady,
inflation-sensitive income, with the potential for long-term capital
appreciation, which makes it an ideal match for our stakeholders."
Morguard Real Estate Investment Trust will acquire a 100 percent
freehold interest in Pine Centre Mall located in Prince George, BC.
Pine Centre Mall is a 475,177 square foot market dominant, single level
enclosed regional shopping centre built in 1974, renovated and expanded
in 2008 with a strong and diversified tenant mix anchored by Target and
Sears department stores.
"Well occupied and dominant regional shopping centres in performing
markets complement our established retail portfolio," said Rai Sahi,
Chairman and CEO of Morguard. "Retail is our largest asset class and
upon closing, Morguard will manage more than 18 million square feet of
retail across its owned and managed retail assets."
The acquired assets will be managed by Morguard, adding approximately
1.5 million square feet of retail space to the current managed
portfolio bringing total assets under management to approximately $14.5
billion CDN.
About Morguard REIT
Morguard Real Estate Investment Trust is a closed-end real estate
investment trust, which owns a diversified portfolio of 54 high quality
retail, office and mixed-use properties in Canada with an approximate
value of $2.8 billion and comprising approximately 9.1 million square
feet of leaseable space.
About the Healthcare of Ontario Pension Plan
Created in 1960, HOOPP is the pension plan of choice for Ontario's
hospital and community-based healthcare sector with over 440
participating healthcare organizations. HOOPP's 274,000 members include
nurses, medical technicians, food services staff and laundry workers,
and many other people who work hard to provide valued Ontario
healthcare services.
About Morguard
Morguard Corporation (TSX: MRC) is a major North American real estate
and property management company. It has extensive retail, office,
industrial and residential holdings owned directly and through its
investment in Morguard REIT (TSX: MRT.UN) and Morguard North American
Residential REIT (TSX: MRG.UN). Morguard also provides real estate
management services to institutional and other investors.
Certain information in this press release may constitute forward-looking
statements that involve a number of risks and uncertainties.
Forward-looking statements use the words "believe," "expect,"
"anticipate," "may," "should," "intend," "estimate" and other similar
terms, which do not relate to historical matters. Such forward-looking
statements involve known and unknown risks and uncertainties and other
factors that may cause the actual results to differ materially from
those indicated. It is believed that the expectations reflected in
forward looking statements are based on reasonable assumptions; however, no
assurance can be given that actual results will be consistent with
these forward-looking statements. Except as required by applicable law,
there is no intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise. Readers are cautioned not to place undue
reliance on the forward-looking statements.
SOURCE Morguard Real Estate Investment Trust
