Morguard Completes Sale of 131 Queen Street in Ottawa
Morguard Corporation ("Morguard") (TSX: MRC) announced today that it completed the sale of its leasehold interest in 131...
Morguard Corporation (“Morguard”) (TSX: MRC) announced today that it completed the sale of its leasehold interest in 131 Queen Street in Ottawa to Public Services and Procurement Canada (“PSPC”). The transaction resulted in gross proceeds of $148.2 million.
Morguard co-developed 131 Queen Street in 2006 with a development partner, and the building was pre-leased to the federal government. Located in downtown Ottawa near Parliament Hill and light rail transit, the Class A property has a total gross leasable area of 328,500 square feet. It includes office and retail space, 36 furnished residential apartments, and a three-level underground garage.
The transaction followed PSPC’s exercise of its contractual option to acquire Morguard’s leasehold interest at fair market value under the existing lease agreement. The sale price represents a 34% premium to Morguard’s previously reported IFRS fair value, prior to the adjustment to reflect the fair market value determined in accordance with the valuation provisions of the lease agreement.
Following repayment of $29.6 million of property-related debt and closing costs, the transaction generated net cash proceeds of approximately $118.2 million. The proceeds will be used to partially fund Morguard’s investment in the multi-suite residential portfolio acquisition announced earlier this year.
Morguard maintains a significant presence in Ottawa, managing a diversified portfolio of office, retail, multi-suite residential and hotel properties, including 2,463 residential suites and 346 hotel rooms. The portfolio has a total gross leasable area of 4.1 million square feet, of which approximately 2.8 million square feet is office space.
About Morguard Corporation
For more than 50 years, Morguard has been a leading fully integrated real estate and investment management company in North America. Listed on the Toronto Stock Exchange (TSX: MRC), the company and its subsidiaries, Morguard REIT (TSX: MRT.UN) and Morguard North American Residential REIT (TSX: MRG.UN), provide property management services across a diversified portfolio of multi-suite residential, retail, office and industrial properties, delivering operational excellence through innovative systems, responsive tenant and resident support, and responsible sustainability practices.
For more information, visit morguard.com or follow us on LinkedIn and Instagram.
Source : Morguard Corporation
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