MISSISSAUGA, ON, Nov. 30, 2012 /CNW/ – Morguard Corporation (TSX: MRC)
(“Morguard”) today announced that it has finalized an agreement to
purchase, through a wholly-owned subsidiary, a 100% freehold interest
in Alta at K Station, a LEED Gold Certified high rise residential
rental complex in Chicago, IL. The property comprises two towers built
on an eight-level parking and retail podium with 848 residential units,
700 above-grade parking stalls and 12,000+ SF of high-street retail.
The acquisition is expected to close on or about December 27, 2012 and
conditions, other than customary closing conditions, have now been
satisfied.

Alta at K Station, located at 555 West Kinzie Street in Chicago’s West
Loop, sits directly on the city’s urban rail system on a 1.7 acre
site. The 37 storey and 41 storey towers were completed for occupancy
in 2010 and currently have an occupancy rate of about 94%.

Morguard will assume management of the complex on March 1,
2013.providing all asset management and property management services to
support this long-term investment.

Alta at K Station will be purchased free and clear of financial
encumbrances for total consideration of approximately US$300 Million
(excluding closing costs). Morguard expects to finance the purchase
price with: (i) a mortgage in the principal amount of approximately
US$200 million for a term of ten years, bearing interest at 3.29% per
annum; (ii) and other available sources of funds.

“This opportunity allows Morguard Corporation to expand its footprint in
the U.S. and execute on our U.S. growth strategy to acquire
high-quality core assets,” said Rai Sahi, Chief Executive Officer,
Morguard Corporation. “We’re building on our successful track record of
ownership and management of real assets to deliver shareholder value. ”

In a separate transaction earlier this month, Morguard acquired a 95%
equity interest in the Toronto Airport Marriott Hotel. The full
service hotel located on five+ acres at Pearson International Airport
in Ontario features 424 rooms, a 26,000 SF banquet facility and a 500+
stall car park. The opportunity augments Morguard’s current direct and
indirect hotel investments. Additionally, Morguard Real Estate
Investment Trust (TSX: MRT.UN) (“Morguard REIT”), announced on October
31, 2012 that it had acquired 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 purchase of Alta at K Station brings the total value of acquisitions
by the Morguard group of companies to more than $700 Million in the
fourth quarter of 2012.

About Morguard

Morguard is an expert in North American real
estate ownership, investment and management. With a strategic focus on
high-quality assets and diversification, Morguard has a proven track
record of realizing the potential of real estate through consistent
investment performance. Morguard has more than $12 billion of assets owned and under
management. The integrated real estate services company manages its own
real estate portfolio, and also invests and manages on behalf of
third-party institutional and private real estate investors. Morguard
offers integrated real estate services, including investment
management, asset management and property management.

Morguard Corporation also owns a 42.8% interest in Morguard Real Estate
Investment Trust (TSX: MRT.UN) and a 56.1% effective interest in the
Morguard North American Residential Real Estate Investment Trust (TSX:
MRG.UN).

SOURCE Morguard Corporation