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