Morguard North American Residential REIT closes public offering of C$60 million of trust units
On January 9, 2017, Morguard North American Residential Real Estate Investment Trust (the "REIT") announced that it completed its previously announced offering with a syndicate of underwriters co-led by RBC Capital Markets and TD Securities, to issue on a bought deal basis, 4,370,000 trust units at a price of C$13.75 per unit representing gross proceeds of C$60,087,500. The REIT has granted the underwriters an over-allotment option, exercisable at any time up to 30 days after closing of the offering, to acquire additional units up to the lesser of 655,500 units and the underwriters' respective "over-allocation position" as of the closing date.
As part of the transaction, Morguard Corporation (Morguard) purchased C$10,037,500 of the units being offered, being 730,000 units, at the offering price. Morguard holds an approximate 46.0% effective interest in the REIT through ownership of units and Class B LP units (45.4%, assuming the exercise in full of the underwriters' over-allotment option).
The net proceeds from the offering will be used to fund future acquisitions, repay debt and for general trust purposes.
Morguard North American Residential REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 15 Canadian residential apartment communities, located in Alberta and Ontario, and 31 U.S. low-rise and mid-rise, garden-style apartment communities located in Alabama, Colorado, Florida, Georgia, Louisiana, North Carolina and Texas.
Further information can be found on Canada Newswire's website.