Morguard North American Residential Real Estate Investment Trust (TSX:MRG.UN) signed an agreement to acquire 12 multi-family assets in Texas, Colorado, Florida, North Carolina and Georgia from an institutional fund sponsored by Pearlmark Real Estate Partners for approximately $470 million.
January 08, 2013 at 11:00 pm EST
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Morguard North American Residential Real Estate Investment Trust (TSX:MRG.UN) signed an agreement to acquire 12 multi-family assets in Texas, Colorado, Florida, North Carolina and Georgia from an institutional fund sponsored by Pearlmark Real Estate Partners for approximately $470 million on December 21, 2012. In a related transaction, Morguard North American Residential Real Estate Investment Trust (TSX:MRG.UN) signed an agreement to acquire 12 multi family residential apartment and townhome complexes located in Pensacola, Florida, Mobile, Alabama and south-west Louisiana from Morguard Corporation on January 9, 2013. Residential Apartment and Townhome Complexes are located in Dallas, Texas, Denver, Colorado, Tampa, Florida, Raleigh, North Carolina and Atlanta, Georgia. For the year ended December 31, 2012, 12 Multi-Family Assets in Texas, Colorado, Florida, North Carolina and Georgia reported revenues of $45.91 million, net loss of $4.73 million and total assets of $362.25 million. The conditions, other than customary closing conditions and certain consents, have been satisfied. The acquisition is expected to close on or about March 31, 2013. The acquisition will contribute to the Morguard North on an accretive basis and is indicative of U.S. growth strategy.
As on April 19, 2013, Morguard North American Residential Real Estate Investment completed the purchase of six multi-unit residential assets in Denver, Colorado, Tampa, Florida, Cary, North Carolina and Atlanta, Georgia from an institutional fund sponsored by Pearlmark Real Estate Partners for $218 million (excluding closing costs). In connection with the purchase of four of the six acquired properties Morguard North American assumed in-place mortgage financing of $81.8 million (weighted average interest rate of 4.86% with a weighted average term to maturity of 4.6 years). For the remaining two properties, Morguard North American, at closing, entered into first mortgage financing arrangements in an aggregate amount of $57.7 million (weighted average interest rate of 3.51%) for terms of 10 years. Morguard North American is expected to complete the acquisition of an additional six multi-unit residential assets by the end of May 2013.
Morguard North American Residential Real Estate Investment Trust (the REIT) is an open-ended real estate investment trust. The REIT owns, through a limited partnership, interests in Canadian residential apartment communities, located in Alberta and Ontario, and United States residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia, and Maryland. The objectives of the REIT are to generate stable and growing cash distributions to Unitholders on a tax-efficient basis; to enhance the value of its portfolio and the long-term value of its units through active asset and property management; and to expand the REIT's asset base, primarily through acquisitions and property improvements. The REIT's multi-suite residential property portfolio consists of about 16 Canadian properties and 27 United States properties, having a total of approximately 13,089 residential suites and 239,500 square feet of commercial area.
Morguard North American Residential Real Estate Investment Trust (TSX: MRG.UN) signed an agreement to acquire 12 multi-family assets in Texas, Colorado, Florida, North Carolina and Georgia from an institutional fund sponsored by Pearlmark Real Estate Partners for approximately $470 million.
MORGUARD NORTH AMERICAN RESIDENTIAL REAL ESTATE INVESTMENT TRUST 
