Mr. K. Sahi reports

MORGUARD NORTH AMERICAN RESIDENTIAL REIT PRICES $75 MILLION INITIAL PUBLIC OFFERING

Morguard Corp.'s Morguard North American Residential Real Estate Investment Trust (REIT) has filed, and obtained a receipt for, a final prospectus for its initial public offering of 7.5 million trust units with the securities commissions of all provinces and territories in Canada. The trust units will be issued at a price of $10 per unit and are expected to provide holders of trust units with an annual yield of approximately six per cent. Gross proceeds of the offering are expected to be approximately $75-million.

The REIT has granted to the underwriters of the offering an option to purchase up to approximately an additional 750,000 trust units at a price of $10 per unit for a period of 30 days after closing of the offering and, if exercised in full, will increase the total gross proceeds of the offering to approximately $82.5-million.

The offering is being underwritten by a syndicate of underwriters co-led by RBC Capital Markets and TD Securities, and including CIBC, BMO Capital Markets, Scotiabank, HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp. and Dundee Securities Ltd.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of the trust units under the symbol MRG.UN, subject to fulfilling all of the requirements of the TSX.

The offering is expected to close on April 18, 2012. On closing of the initial public offering, it is expected that Morguard Corp. (collectively, with its affiliates, Morguard) will directly or indirectly hold a 69.7-per-cent interest in the REIT (67.6 per cent if the overallotment option is exercised in full). Morguard's experienced multiunit residential real estate team will externally administer and operate the REIT's properties.

On closing of the offering, the REIT will use the net proceeds of the offering to indirectly acquire interests in a portfolio of 14 Canadian multiunit residential properties and three U.S. multiunit residential properties currently operated and owned or co-owned by Morguard. Morguard's interests in the following initial properties will be acquired by the REIT:

Toronto, Ont.

• 35 Thorncliffe Park Dr.;
• 43 Thorncliffe Park Dr.;
• 47 Thorncliffe Park Dr.;
• 49 Thorncliffe Park Dr.;
• 45 Generation Blvd.

Mississauga, Ont.

• 1423 Mississauga Valley Blvd.;
• 1477 Mississauga Valley Blvd.;
• 1547 Mississauga Valley Blvd.;
• 935 Dundas St. East;
• 2869 Battleford Rd.;
• 3665 Arista Way;
• 30 Elm Dr. East.

Kitchener, Ont.

• 305-315 Margaret Ave.

Edmonton, Alta.

• 10404 104 Ave.

Louisiana, United States

• 1001 East Dale St., New Iberia;
• 715 Marie Antoinette St., Lafayette;
• 3215 Knight St., Shreveport.

The REIT initially intends to make monthly cash distributions of five cents per trust unit to holders of trust units. The first distribution of the REIT will be for the period from closing to May 31, 2012 and will be paid on or about June 15, 2012, in the amount of 7.167 cents per trust unit assuming closing occurs on April 18, 2012. Declared distributions will be paid on or about the 15th day of each month to unitholders of record at the close of business on the last business day of the immediately preceding month. Copies of the final prospectus will be available on the SEDAR website.

We seek Safe Harbor.