Morguard Sells 14 Motels In Canada for $410.0 Million

2 minute read Whisk Industry Wire

January, 8 2024

Morguard Company (TSX: MRC) announced nowadays an unconditional settlement to sell a portfolio of 14 excessive-quality accommodations. This strategic switch aligns with Morguard’s commitment to optimize its real estate portfolio, specializing in core real estate investments, along side location of business, industrial, retail, and multi-suite residential properties.

“It is an opportune second to divest these properties given the most recent market query for a lodge portfolio of this measurement and quality, as effectively as their enhanced market price.” Êsaid K. Rai Sahi, Chairman and Chief Executive Officer. “Morguard has strategically divested our lodge portfolio to align with our needs of strengthening the corporate’s stability sheet while owning a excessive-quality portfolio of earnings producing real estate.”

The transaction will consequence in crude proceeds of $410.0 million, before smartly-liked adjustments and closing charges. Upon completion of the transaction, Morguard will repay first-mortgage debt totaling $Forty eight.7 million, providing the corporate with win proceeds of $361.3 million. The portfolio of accommodations, featuring Marriott, Hilton, IHG and unbiased accommodations, is located in predominant urban companies across Canada, along side the Greater Toronto Condo (particularly Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax, and Sudbury. Morguard will withhold possession of two accommodations: the twin-price Hilton Backyard Inn and Homewood Suites in Ottawa, Ontario and Inn at the Quay in Fresh Westminster, British Columbia.

“The heightened degree of monetary flexibility offered by this transaction will empower us to strategically deleverage, which is very vital given the most recent hobby price atmosphere, mentioned Paul Miatello, Chief Monetary Officer.

The transaction is arena to smartly-liked closing conditions and is anticipated to shut within the first quarter of 2024.