Morguard REIT announces Class A office acquisition in downtown Calgary

Morguard Real Estate Investment Trust , announced  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., 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.

on October 31, 2012