19:49:07 EDT Thu 31 Oct 2024
Enter Symbol
or Name
USA
CA



Morguard Corp
Symbol MRC
Shares Issued 10,813,286
Close 2024-01-05 C$ 107.65
Market Cap C$ 1,164,050,238
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ORIGINAL: Morguard Announces Strategic Sale of Hotel Portfolio

2024-01-08 09:00 ET - News Release

Morguard Announces Strategic Sale of Hotel Portfolio

Canada NewsWire

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

Contact:

K. Rai Sahi, Chairman and CEO; Paul Miatello, Chief Financial Officer, T 905-281-3800 or email corporatemarketing@morguard.com

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