Morguard buys stake in office complexes for C$80 million

Wed Dec 28, 2011 5:18pm EST
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(Reuters) - Morguard Real Estate Investment Trust MRT_u.TO said it acquired a 50 percent stake in two office complexes in Calgary and Edmonton for C$80.7 million ($78.96 million).

The deal was funded through issuance of C$40.6 million in first mortgage debt and drawings on Morguard's lines of credit.

The office complex in Edmonton, which has 304,000 square feet of leaseable area, is currently completely leased, with the largest tenant, the Province of Alberta, occupying about 95 percent of the rentable space.

The office property in Calgary contains 78,315 square feet of leaseable area all of which is under a long-term lease.

Shares of the company closed at C$15.88 on Wednesday on the Toronto Stock Exchange.

(Reporting by Shounak Dasgupta in Bangalore; Editing by Sriraj Kalluvila)