TSX: MRT.UN

MISSISSAUGA, ON, Oct. 30, 2012 /CNW/ – Morguard Real Estate Investment
Trust (“Morguard REIT” or the “REIT”) (TSX: MRT.UN), announced today
that it has finalized an agreement to purchase a 100% freehold interest
in Penn West Plaza, Calgary, a Class A office property that is
comprised of two office towers with 621,628 square feet of gross
leasable area, 379 parking spaces and 17,766 square feet of prime
retail space. The acquisition is expected to close on or about October
31, 2012 and conditions, other than customary closing conditions, have
now been satisfied.

Penn West Plaza (207 & 213-9th Avenue S.W.) is located in the Central
Business District of downtown Calgary. Both Class A office towers
(other than ancillary retail space) are 100% leased to Penn West
Petroleum Ltd. (NYSE: PWE TSX: PWT), and secured by a long-term net
lease, with a remaining lease term of 12 years.

Penn West Plaza will be purchased free and clear of financial
encumbrances for total consideration of approximately $374.3 million
(excluding closing costs). The REIT expects to finance the purchase
price with: (i) a mortgage in the principal amount of approximately
$210 million for a term of ten years, bearing interest at 3.93% per
annum; (ii) the net proceeds from the REIT’s offering of 4.85%
convertible unsecured subordinated debentures, due October 31, 2017, of
approximately $145.7 million; and (iii) other available sources of
funds.

About Morguard REIT

Morguard REIT is a closed-end real estate investment trust, which owns a
diversified portfolio of 53 high quality retail, office and mixed use
properties in Canada with an approximate value of $2.2 billion and
comprising approximately 8.5 million square feet of leaseable space.

Certain information in this press release may constitute forward-looking
statements that involve a number of risks and uncertainties, including
statements regarding the outlook for the REIT’s business results of
operations. Forward-looking statements use the words “believe,”
“expect,” “anticipate,” “may,” “should,” “intend,” “estimate” and other
similar terms, which do not relate to historical matters. Such
forward-looking statements involve known and unknown risks and
uncertainties and other factors that may cause the actual results to
differ materially from those indicated. Such factors include, but are
not limited to, general economic conditions, the availability of new
competitive supply of commercial real estate that may become available
either through construction or sublease, the REIT’s ability to maintain
occupancy and to lease or re-lease space on a timely basis at current
or anticipated rates, tenant bankruptcies, financial difficulties and
defaults, changes in interest rates, changes in operating costs, the
REIT’s ability to obtain adequate insurance coverage at a reasonable
cost, the ability to complete potential acquisitions (including the
Penn West acquisition) and the availability of financing. The REIT
believes that the expectations reflected in forward looking statements
are based on reasonable assumptions; however, the REIT can give no
assurance that actual results will be consistent with these
forward-looking statements. Except as required by applicable law, the
REIT disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise. Readers should be cautioned not to place
undue reliance on the forward-looking statements.

SOURCE Morguard Real Estate Investment Trust