Mr. Rai Sahi reports

MORGUARD COMPLETES $410 MILLION SALE OF HOTEL PORTFOLIO

Morguard Corp. has successfully completed its previously announced sale of a portfolio of 14 high-quality hotels for gross proceeds of $410-million. This strategic transaction signifies Morguard's progress in optimizing its real estate portfolio and sharpening its focus on core real estate investments.

"The successful conclusion of this deal is a testament to the appeal of our hotel portfolio and the strength of Morguard's management over the years," said K. Rai Sahi, chairman and chief executive officer. "We are pleased to have capitalized on the current market demand for high-quality hotels. This positions us well for future growth."

The portfolio, comprising 14 renowned hotels, including Marriott, Hilton, IHG and independent hotels across Canada, specifically in the Greater Toronto Area (Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax and Sudbury, was sold to an institutional purchaser. Further information about the properties being sold can be found in the appended section of this news release. Morguard will retain ownership of two hotels: the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, Ont., and Inn at the Quay in New Westminster, B.C.

Upon closing the transaction, Morguard repaid first mortgage debt totalling $48.7-million, resulting in net proceeds of $361.3-million, before closing costs and customary adjustments. The liquidity provided by this transaction demonstrates Morguard's commitment to reduce indebtedness, and pursue its core business objective of owning and managing a diversified real estate portfolio of office, industrial, retail and multisuite residential properties.

About Morguard Corp.

Morguard is a major North American real estate and property management company. Morguard has extensive retail, office, industrial 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 $18.3-billion.