Morguard Corporation and Morguard Real Estate Investment Trust Acquire Major Mixed-Use Property Complex

    MISSISSAUGA, ON, Jan. 3 /CNW/ - Morguard Corporation (TSX:MRC) and
Morguard Real Estate Investment Trust (TSX: MRT.UN) today announced that they
had acquired, effective December 28, 2007, a three tower, mixed-use property
complex in downtown Ottawa. The complex includes 350 Sparks Street, a 12
storey, 171,311 square foot office building and 361 Queen Street, a Delta
branded hotel, consisting of two towers containing 328 guest rooms. The hotel
is currently under long-term lease to a major Canadian hotel real estate
investment trust. The property also includes an underground parking garage
containing 273 parking spaces.
    The complex was acquired at a price of $75.3 million and will be owned
and operated through a 50/50 joint venture arrangement between Morguard
Corporation and Morguard Real Estate Investment Trust.

    Morguard Corporation is a major Canadian real estate and property
management company. It has extensive retail, office, industrial and
residential holdings through its investments in Morguard REIT and Revenue
Properties Company Limited. Morguard provides management services to
institutional and other investors for commercial and residential real estate
through Morguard Investments Limited and Morguard Residential.

    Morguard Real Estate Investment Trust is a closed-end real estate
investment trust, which owns a diversified portfolio of 48 retail, office, and
industrial properties in Canada with a book value of $1.2 billion and
approximately 7.4 million square feet of leasable space.

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