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Morguard North American Residential REIT Prices $75 Mln IPO - Quick Facts

Morguard Corp. (MRC.TO) and Morguard North American Residential Real Estate Investment Trust or "REIT" announced that the REIT has filed a final prospectus for its initial public offering of 7.50 million trust units with the securities commissions of all provinces and territories in Canada.

The trust units will be issued at a price of $10.00 per unit and are expected to provide holders of trust units with an annual yield of approximately 6.0%. 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 $10.00 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 Toronto Stock Exchange 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 Corporation will directly or indirectly hold a 69.7% interest in the REIT (67.6% if the over-allotment option is exercised in full). Morguard's experienced multi-unit 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 multi-unit residential properties and three U.S. multi-unit 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:

The REIT initially intends to make monthly cash distributions of $0.05 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 $0.07167 per trust unit assuming closing occurs on April 18, 2012.

by RTT Staff Writer

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