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Press release from CNW Group

Morguard North American Residential REIT completes $75.0 million initial public offering

Wednesday, April 18, 2012

Morguard North American Residential REIT completes $75.0 million initial public offering08:04 EDT Wednesday, April 18, 2012/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./MISSISSAUGA, ON, April 18, 2012 /CNW/ - Morguard Corporation (TSX: MRC) and Morguard North American Residential Real Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today that the REIT has completed its initial public offering of trust units. The offering raised gross proceeds of $75.0 million, and was underwritten by a syndicate of underwriters co-led by RBC Capital Markets and TD Securities, and including CIBC, BMO Capital Markets, Scotiabank, HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp. and Dundee Securities Ltd. A total of 7,500,000 trust units were sold at a price of $10.00 per trust unit.The REIT has granted the underwriters of the offering an over-allotment option to acquire up to an additional 750,000 trust units at a price of $10.00 per trust unit for a period of 30 days after closing of the offering which, if exercised in full, would increase the total gross proceeds of the offering to $82.5 million.The trust units will commence trading today on the Toronto Stock Exchange under the symbol "MRG.UN".Rai Sahi, Chief Executive Officer of Morguard Corporation and the REIT commented that, "We are delighted by the interest investors have expressed in the initial public offering of Morguard North American Residential REIT. Our experienced management team looks forward to managing the quality portfolio of multi-unit residential properties and further developing the potential of the REIT."Morguard Corporation (together with its affiliates, "Morguard") has retained an approximate 69.7% effective interest in the REIT (or an approximate 67.6% effective interest in the REIT if the over-allotment option is exercised in full). Morguard's experienced multi-unit residential team will externally administer and operate the REIT's properties.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. Declared distributions will be paid on or about the 15th day of each month to unitholders of record at the close of business on the last business day of the immediately preceding month. Copies of the final prospectus are available on SEDAR at www.sedar.com.The trust units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, ''U.S. persons'' (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the trust units in the United States or to, or for the account or benefit of, U.S. Persons.About Morguard North American Residential REITThe REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT has been formed to own multi-unit residential properties in Canada and the United States. Concurrently with the completion of the initial public offering of trust units, the REIT indirectly acquired from Morguard, through a limited partnership, interests in a portfolio of 14 Canadian multi-unit residential properties and three U.S. multi-unit residential properties consisting interests in 5,439 residential suites that are located in Ontario, Alberta and Louisiana, with an IFRS value of approximately $676.9 million as at December 31, 2011.About Morguard Morguard is a real estate investment company whose principal activities include the acquisition, development and ownership of commercial and multi-unit residential real estate properties. Morguard currently owns interests in a diversified portfolio of office, industrial, retail and multi-unit residential properties located across Canada and the United States. Morguard owns a diversified portfolio of 84 retail, multi-unit residential, office and industrial properties comprising 5,066 multi-unit residential suites and approximately 7.1 million square feet of commercial leasable space. Morguard owns approximately 44.8% of the units of Morguard Real Estate Investment Trust and an approximate 69.7% effective interest (assuming the over-allotment option is not exercised) in Morguard North American Residential REIT. Morguard provides advisory and management services to institutional and other investors through Morguard Investments Limited and Morguard Residential.Forward-Looking StatementsThis press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Morguard's and the REIT's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Morguard's or the REIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include the factors discussed under "Risk Factors" in the final prospectus of the REIT dated April 5, 2012. Neither Morguard nor the REIT undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.For more information, visit Morguard's website at www.morguard.com and the REIT's and Morguard's respective issuer profiles at www.sedar.com.For further information: Morguard Corporation and Morguard North American Residential REIT K. (Rai) Sahi Chief Executive Officer (905) 281-3800 Paul Miatello Chief Financial Officer (905) 281-3800