MISSISSAUGA, ON, June 28, 2013 /CNW/ – Morguard North American
Residential Real Estate Investment Trust (TSX: MRG.UN) (the “REIT”) is
pleased to announce that it has completed the purchase of six
multi-unit residential properties from a subsidiary of Morguard
Corporation for US$89.0 million (excluding closing costs).

The six properties acquired are residential apartment and townhome
communities comprised of 1,690 suites located in Mobile, Alabama and
Pensacola, Florida. The properties are low-rise, garden-style
apartment communities with modern leasing centers and attractive
amenity packages.

The purchase price has been satisfied by the assumption of certain
Fannie Mae insured mortgages with an aggregate carrying amount of
US$64.4 million (the “Assumed Fannie Mae Mortgages”) and a reduction of
the balance owing by Morguard Corporation to the REIT under an
existing, revolving loan agreement. The Assumed Fannie Mae mortgages
have a weighted average interest rate of 5.6% and a weighted average
term to maturity of 3.5 years. In connection with the acquisition of
the properties, Morguard Corporation has agreed to provide installment
payments during the remaining terms of the Assumed Fannie Mae Mortgages
to the REIT in order for the REIT to achieve an effective annual
interest rate of 4.6% on the assumed Fannie Mae Mortgages. The
transaction has an adjustment date of May 1, 2013.

After closing this acquisition the REIT will own interests in a total of
12,850 suites in Canada and the U.S valued at approximately $1.5
billion.

About Morguard North American Residential Real Estate Investment Trust

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 14 Canadian residential
apartment communities, located in Alberta and Ontario, and 30 U.S.
low-rise and mid-rise, garden-style apartment communities located in
Alabama, Colorado, Florida, Georgia, Louisiana, North Carolina and
Texas consisting of 12,850 residential suites.

SOURCE Morguard North American Residential Real Estate Investment Trust