Morguard Corp., headquartered in Mississauga, Ontario, has announced that its Morguard North American Residential Real Estate Investment Trust (REIT) has filed and obtained a receipt for a final prospectus for its initial public offering of 7.5 million trust units with the securities commissions of all provinces and territories in Canada. The trust units will be issued at a price of C$10 per unit and are expected to provide holders of trust units with an annual yield of approximately 6%. Gross proceeds of the offering are expected to be approximately C$75 million.
The offering is expected to close on April 18. Upon closing of the offering, the REIT will use the net proceeds to indirectly acquire interests in a portfolio of 14 Canadian multi-unit residential properties and three Louisiana-based multifamily residential properties currently operated and owned or co-owned by Morguard Corp.
The Toronto Stock Exchange has conditionally approved the listing of the trust units under the symbol ‘MRG.UN.’