MORGUARD ANNOUNCES STRATEGIC SALE OF HOTEL PORTFOLIO
The transaction marks a significant milestone for Morguard's portfolio optimization. |
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MORGUARD ANNOUNCES STRATEGIC SALE OF HOTEL PORTFOLIO
The transaction marks a significant milestone for Morguard's portfolio optimization. |
Category: North America & West Indies / Carribean islands - Industry economy
- Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2024-01-09
Morguard Corporation ("Morguard") (TSX: MRC) announced today an unconditional agreement to sell a portfolio of 14 high-quality hotels.
This strategic move aligns with Morguard's commitment to optimize its real estate portfolio, focusing on core real estate investments, including office, industrial, retail, and multi-suite residential properties.
"It is an opportune moment to divest these properties given the current market demand for a hotel portfolio of this size and quality, as well as their enhanced market value." said K. Rai Sahi, Chairman and Chief Executive Officer.
"Morguard has strategically divested our hotel portfolio to align with our objectives of strengthening the company's balance sheet while owning a high-quality portfolio of income producing real estate."
The transaction will result in gross proceeds of $410.0 million, before customary adjustments and closing costs. Upon completion of the transaction, Morguard will repay first-mortgage debt totaling $48.7 million, providing the company with net proceeds of $361.3 million.
The portfolio of hotels, featuring Marriott, Hilton, IHG and independent hotels, is located in major urban centers across Canada, including the Greater Toronto Area (specifically Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax, and Sudbury. Further information about the properties being sold can be found in the appended section of this press release. Morguard will retain ownership of two hotels: the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, Ontario and Inn at the Quay in New Westminster, British Columbia.
"The heightened level of financial flexibility provided by this transaction will empower us to strategically deleverage, which is important given the current interest rate environment," said Paul Miatello, Chief Financial Officer.
The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2024.
About Morguard Corporation
Morguard Corporation is a major North American real estate and property management company. It has extensive retail, office, industrial, hotel and residential holdings owned directly and through its investment in Morguard Real Estate Investment Trust and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $18.6 billion.
Hotel portfolio
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|
|
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Property
|
City
|
Province
|
Total
Rooms
|
Courtyard Marriott Markham
|
Markham
|
ON
|
144
|
Residence Inn Marriott - Markham
|
Markham
|
ON
|
100
|
Courtyard Marriott Mississauga
|
Mississauga
|
ON
|
144
|
Hilton Garden Inn Toronto Airport West
|
Mississauga
|
ON
|
152
|
Cambridge Suites Mississauga
|
Mississauga
|
ON
|
100
|
Holiday Inn Express
|
Ottawa
|
ON
|
115
|
Towne Place Suites by Marriott
|
Sudbury
|
ON
|
105
|
Courtyard by Marriott Toronto Airport
|
Toronto
|
ON
|
168
|
Hotel Carlingview Toronto Airport
|
Toronto
|
ON
|
112
|
Residence Inn by Marriott Toronto Airport
|
Toronto
|
ON
|
137
|
Toronto Airport Marriott
|
Toronto
|
ON
|
424
|
Courtyard Marriott Vaughan
|
Vaughan
|
ON
|
144
|
Cambridge Suites Hotel Halifax
|
Halifax
|
NS
|
200
|
The Prince George Hotel
|
Halifax
|
NS
|
203
|
Total Hotel
|
|
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