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Morguard Corporation Provides Financing Update

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^{Published in Business and Finance on Thursday, July 30th 2009 at 14:59 GMT, Last Modified on 2009-07-30 14:59:36 by Market Wire}  

 MISSISSAUGA, ON, July 30 /CNW/ - Morguard Corporation (TSX: MRC) announced today that the Company has successfully refinanced or obtained commitments to refinance virtually all of the mortgages maturing during 2009. As of today's date, one Canadian retail asset and two multi-unit residential assets have been refinanced. A commitment to refinance a third multi-unit residential asset has been received and is expected to be funded during the third quarter of 2009. Gross proceeds from the four previously mentioned refinancings will total $123 million which will be used to repay maturing mortgages of $57 million, reduce bank indebtedness with the balance to be used for general corporate purposes. Including refinancing activities from December 2008, Morguard has received gross proceeds of approximately $289 million against which $139 million was used to repay maturing mortgages. The weighted average interest rate on all new debt financed since December 2008 is 4.57%. The table below provides a further breakdown of the refinancings. Refinanc- Expiring ing(*) ------------------- ---------- Weighted No. of Average Month / Prop- Principal Interest New Asset Type Year erties Maturing Rate Principal ------------------------------------------------------------------------- Canada retail Q2 2009 1 $17,000 6.75% $40,000 Multi-unit residential Q3 2009 3 $40,000 6.14% $83,000 Multi-unit residential Q4 2008 4 $82,000 6.07% $166,000 ------------------------------------- 8 $139,000 6.17% $289,000 ------------------------------------- ------------------------------------- Refinancing(*) --------------------- Weighted No. of Average Month / Prop- Interest Asset Type Year erties Rate Term --------------------------------------------------------------- Canada retail Q2 2009 1 6.59% 5 years Multi-unit residential Q3 2009 3 4.08% 5 years Multi-unit residential Q4 2008 4 4.33% 5 years --------------------------- 8 4.57% ---------------- ---------------- (*) Refinanced or commitment received. Upon funding the remaining multi-unit residential mortgage, the Company expects to have cash, loans due on demand and borrowing capacity under existing credit facilities of approximately $165 million. Morguard Corporation is a real estate company, which owns a diversified portfolio of 103 retail, office, multi-unit residential properties comprising 6.7 million square feet of commercial space and 10,504 apartment suites in Canada Page 1 and the United States. Morguard provides management services to institutional and other investors for commercial and multi-unit residential properties through Morguard Investments Limited. For more information, visit the Company's website at [ www.morguard.com ].

For further information: Morguard Corporation, K. (Rai) Sahi, Chief Executive Officer, (905) 281-3800; Paul Miatello, Chief Financial Officer, (905) 281-3800