("Morguard") (TSX: MRC) announced today that the real estate company
has purchased Capital East Business Centre, a two-building, small-bay
industrial portfolio in Ottawa, ON. The acquisition was completed for a
purchase price of $42.5 million, excluding taxes and transaction costs, and
encompasses 243,000 square feet on 15.5 acres.
"With an in-demand
location and market-leading features, the Capital East Business Centre is the
best multi-tenant industrial facility in the Ottawa region," said K. Rai
Sahi, Chairman and Chief Executive Officer of Morguard Corporation.
"Acquisition opportunities like the Capital East Business Centre do not
come up often, and we are delighted to add this exceptional property to our
portfolio as part of our sustainable growth plan."
The acquisition increases
Morguard's footprint in Ottawa, which has been amongst the strongest and most
consistent real estate markets in Canada. In the Ottawa region, Morguard
currently owns and/or manages approximately 4.8 million square feet of
property, which allows for management synergies and reduced operating costs.
The lack of developable industrial land and building restrictions due to the
Ottawa Greenbelt has greatly limited the amount of new supply in the market,
making Capital East Business Centre a highly sought after property.
The property is prominently
situated on Polytek Street in the Canotek Business Park, a premier business
park just east of the Ottawa downtown core. The location offers easy entry to
the Queensway and Montreal Road, providing excellent regional travel in all
The buildings were constructed
in 2010 and 2015, with minimal capital expenditures forecast for the near
future. The recent construction offers best-in-class features including clear
heights of 28 feet and flexible unit configuration.
"This is a premier
acquisition that supports Morguard's long-term strategy of investing in
diversified, high-quality assets across North America," said Paul
Miatello, Chief Financial Officer of Morguard Corporation. "This
best-in-class asset in a strong market will provide steady cash flow and a
solid return on investment."
Morguard Corporation is
a major North American real estate company. It has extensive retail, office,
industrial, multi–suite residential, and hotel holdings owned directly, or
through its investment in Morguard REIT (TSX: MRT.UN), Morguard North American
Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH). Morguard also
provides real estate management services to institutional and other investors.
Morguard's owned and managed portfolio of assets is valued at $22.0 billion.
For more information, please visit Morguard's website at www.morguard.com or follow
us on LinkedIn.
For further information: K. Rai
Sahi, Chairman and Chief Executive Officer, 905-281-3800; Paul Miatello, Chief
Financial Officer, 905-281-3800 or email firstname.lastname@example.org