Morguard Corporation (MRC-T) and its North American Residential REIT plan to jointly invest $1 billion in a Canadian multifamily portfolio owned by TD Asset Management Inc. As part of the transaction, Morguard will also assume property management responsibilities for the portfolio.

The transaction represents approximately a 20 per cent undivided interest in a portfolio of 106 properties valued at approximately $5 billion.

The Canada-wide portfolio consists of more than 15,500 units across urban and suburban markets.

A plurality of the assets are in the Greater Toronto-Hamilton Area (36 per cent), followed by Southwest Ontario (19 per cent), and 13 per cent in Ottawa. Outside of Ontario, 12 per cent are in Alberta, 12 per cent in Quebec and eight per cent in Nova Scotia.

"This transaction represents significant growth in Morguard's residential services, enabled by our depth of experience and success as an asset and property manager for institutional-quality multi-suite residential communities," Angela Sahi, president and CEO of Morguard, said in the Thursday morning announcement.

Based in Mississauga, Morguard is a real estate investment and management company with an owned and managed portfolio of $18.9 billion as of Dec. 31. The Morguard North American Residential REIT (MRG-UN-T) is a subsidiary that owns interests in apartment communities in Canada and the U.S.

Based in Toronto, TD Asset Management has a portfolio of $502 billion in assets as of Sept. 30, 2025. 

Morguard’s ‘strong conviction’ in multifamily buildings

The assets in the investment are said to be located in “well-established rental markets supported by population growth and long-term housing demand.”

Also, the portfolio is described as having some newly delivered and in-progress rental developments, which Morguard said provides growth and supports ongoing asset modernization.

Morguard said it has “strong conviction” in the multifamily asset class because of “sustained rental demand” and “resilient operating fundamentals.” Over the past four years, Morguard's owned Canadian portfolio has delivered an average, same-property net operating income growth of approximately 7.4 per cent, the company said.

“This performance reflects consistent execution across high-quality urban and suburban assets.”

With the investment into TD’s portfolio, Morguard will increase its owned and managed assets, including its fully owned investment management platform, to approximately $24 billion.

Its residential platform would grow to holding interests in 162 properties and 33,300 units across Canada and the U.S. upon the closing of the transaction.

The transaction with TD is the second notable transaction Morguard announced this week. On Tuesday, the Ottawa Business Journal first reported Public Services and Procurement Canada has agreed to purchase a 14-storey tower in downtown Ottawa from Morguard for $148.2 million. The 20-year-old tower at 131 Queen St., comprises approximately 305,000 square feet of space.

Terms of the investment

The TD portfolio investment is planned to be financed through a mix of vendor financing, assumed mortgages, cash and short-term borrowings. It is expected to close in one tranche in Q3, subject to approvals and due diligence.

The transaction is expected to be immediately accretive to both Morguard and Morguard Residential REIT. It is also anticipated to expand Morguard's third-party managed residential portfolio, and boost Morguard's presence in Montreal, Calgary and Edmonton while adding new exposure to Halifax.

Starting in Q2, Morguard and TD Asset Management will look to implement a structured transition plan focused on operational continuity, employee integration and a consistent resident experience, Morguard said.