Morguard, a leading Canadian real estate and property management company, has announced its plans to sell a portfolio of 14 hotels for a total of 410 million Canadian dollars ($306.8 million). This move is part of Morguard’s strategy to optimize its real estate investments.
The portfolio of hotels includes renowned brands such as Marriott, Hilton, IHG, as well as independent hotels located in major cities across Canada. With this sale, Morguard expects to repay a first-mortgage debt of C$48.7 million and generate net proceeds of C$361.3 million.
By divesting these assets, Morguard aims to streamline its real estate portfolio and focus on core investments in office, industrial, retail, and multi-suite residential properties. This strategic shift will provide the company with increased financial flexibility, particularly in the current interest rate environment.
“We are excited about the opportunities this transaction presents, as it allows us to strategically deleverage and align our investments with our long-term goals,” stated Paul Miatello, Chief Financial Officer of Morguard.
The transaction is anticipated to be completed within the first quarter of this year.