UPDATE 1-Morguard REIT boosts offering size to C$90 mln

* To offer 6.50 pct convertible debentures

* To use proceeds to cut debt, fund acquisitions

Sept 1 (Reuters) - Morguard Real Estate Investment Trust (MRT_u.TO) increased the size of its previously announced bought-deal private placement of certain debentures by C$15 million to C$90 million ($82.57 million).

The company said it agreed with a syndicate of underwriters, led by RBC Capital Markets and TD Securities Inc, to sell 6.50 percent convertible unsecured subordinated debentures due Sept. 30, 2014.

The debentures are convertible into trust units of the company at C$14 per trust unit, Morguard said in a statement.

On Monday, the company had said it would raise C$75 million in a bought-deal financing, partly to pay down its existing debt and fund future acquisitions.

Morguard REIT said it has granted the underwriters an over-allotment option to buy up to an additional C$13.50 million of debentures.

The offering is expected to close on or about Sept. 22.

Units of the company were down 5 Canadian cents at C$11.90 Tuesday morning on the Toronto Stock Exchange.

($1=1.090 Canadian dollar) (Reporting by R. Manikandan in Bangalore; Editing by Unnikrishnan Nair)