Morguard Corporation Provides Update on Land Lease Arbitration
MISSISSAUGA, ON, July 19, 2013 /CNW/ - Morguard Corporation (TSX: MRC) ("Morguard") is providing a status update on the land lease arbitration regarding one of its Toronto-based properties (the "Land Lease Property").
Morguard has leased the land underlying the Land Lease Property for a 100 year term from July 1, 1960. Under a mechanism established in the lease, Morguard and the landlord were required to refer certain questions to a panel of arbitrators who were charged with making certain determinations upon which the land rent will be based from July 1, 2010 to June 30, 2030.
The arbitrators have delivered two awards, with the majority's determinations resulting in a land rent of approximately $11 million and the minority determining a land rent of approximately $3.6 million. The land rent paid by Morguard to the landlord from July 1, 1990 to June 30, 2010 was approximately $2.8 million per annum.
Morguard will be appealing the award of the majority to the Superior Court of Justice of Ontario.
About Morguard Corporation
Morguard Corporation is a major Canadian real estate and property management company. It has extensive retail, office, industrial, hotel and residential holdings owned directly and through its investment in Morguard REIT and Morguard North American Residential Real Estate Investment Trust. Additionally, Morguard provides management services to institutional and other investors for commercial and residential real estate.
SOURCE Morguard Corporation