The transaction marks a significant milestone for Morguard's portfolio optimization.

MISSISSAUGA, ON, Jan. 8, 2024 /CNW/ - Morguard Corporation ("Morguard") (TSX: MRC) announced today an unconditional agreement to sell a portfolio of 14 high-quality hotels. This strategic move aligns with Morguard's commitment to optimize its real estate portfolio, focusing on core real estate investments, including office, industrial, retail, and multi-suite residential properties.

"It is an opportune moment to divest these properties given the current market demand for a hotel portfolio of this size and quality, as well as their enhanced market value."  said K. Rai Sahi, Chairman and Chief Executive Officer. "Morguard has strategically divested our hotel portfolio to align with our objectives of strengthening the company's balance sheet while owning a high-quality portfolio of income producing real estate."

The transaction will result in gross proceeds of $410.0 million, before customary adjustments and closing costs. Upon completion of the transaction, Morguard will repay first-mortgage debt totaling $48.7 million, providing the company with net proceeds of $361.3 million. The portfolio of hotels, featuring Marriott, Hilton, IHG and independent hotels, is located in major urban centers across Canada, including the Greater Toronto Area (specifically Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax, and Sudbury. Further information about the properties being sold can be found in the appended section of this press release. Morguard will retain ownership of two hotels: the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, Ontario and Inn at the Quay in New Westminster, British Columbia.

"The heightened level of financial flexibility provided by this transaction will empower us to strategically deleverage, which is important given the current interest rate environment, said Paul Miatello, Chief Financial Officer.



The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2024.

About Morguard Corporation

Morguard Corporation is a major North American real estate and property management company. It has extensive retail, office, industrial, hotel and residential holdings owned directly and through its investment in Morguard Real Estate Investment Trust and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $18.6 billion. Please visit www.morguard.com or follow us on LinkedIn.

HOTEL PORTFOLIO Property City Province Total 
Rooms Courtyard Marriott Markham Markham ON 144 Residence Inn Marriott - Markham Markham ON 100 Courtyard Marriott Mississauga Mississauga ON 144 Hilton Garden Inn Toronto Airport West Mississauga ON 152 Cambridge Suites Mississauga Mississauga ON 100 Holiday Inn Express Ottawa ON 115 Towne Place Suites by Marriott Sudbury ON 105 Courtyard by Marriott Toronto Airport Toronto ON 168 Hotel Carlingview Toronto Airport Toronto ON 112 Residence Inn by Marriott Toronto Airport Toronto ON 137 Toronto Airport Marriott Toronto ON 424 Courtyard Marriott Vaughan Vaughan ON 144 Cambridge Suites Hotel Halifax Halifax NS 200 The Prince George Hotel Halifax NS 203 TOTAL HOTEL 2,248

SOURCE Morguard Corporation Cision

View original content: http://www.newswire.ca/en/releases/archive/January2024/08/c2077.html