TORONTO-Morguard Real Estate Investment Trust is selling two million sf of industrial space to three Canadian pension funds in two separate transactions totaling $156.7 million (US $134.52 million). The locally headquartered REIT is reshaping its portfolio by swapping out some of its industrial space for office space.
The first transaction--876,000 sf in 11 properties for $72 million (US $61.82 million)--closed on Dec. 28. The second transaction--1.06 million sf in nine properties for $84.7 million (US $72.75 million)--is expected to close before the end of March.
Morguard REIT is a closed-end REIT with 10 million sf of retail, office and industrial properties in Canada. Last month, as part of portfolio reshaping, the company purchased three office buildings in downtown Ottawa, Canada, and a development parcel for $210 million (US $180.31 million). The built portfolio includes 600,000 sf that is 99% leased, mostly to government tenants under long-term leases. The adjacent development parcel can support an additional 390,000 sf of office space.
Morguard CEO K. Rai Sahi could not be reached Tuesday afternoon for comment.
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