WINNIPEG, Oct. 28, 2013 /CNW/ - Lanesborough Real Estate Investment
Trust (TSX: LRT.UN) ("LREIT") announced today that it has agreed to sell the property known as Nova
Court located at 476 Range Lake Road in Yellowknife, Northwest
Territories (the "Property") for a price of $21,680,000 subject to customary closing adjustments
(the "Proposed Transaction").
Nova Court Apartments consists of a four-storey, 107 suite apartment
building and is comprised of 72 one-bedroom and 35 two-bedroom suites
as well as 8,300 square feet of partially unfinished commercial space.
The purchaser of the Property is Temple Hotels Inc. ("Temple"), a real estate company which owns and operates 25 hotel properties.
The sale price of $21,680,000 will be satisfied by Temple assuming the
existing mortgage debt in respect of the Property in the amount of
approximately $8,000,000, with the balance to be paid in cash. The
sale is expected to result in net cash to LREIT of approximately $13.6
million which will be used to prepay debt, including $10,000,000
principal amount of the 9% second mortgage bonds due December 2015
(TSX: LRT.NT.A). The Property was purchased by LREIT in March 2007 for
Mr. Arni Thorsteinson is the Chief Executive Officer and a trustee of
LREIT and the Chief Executive Officer and a director of Temple. The
Proposed Transaction was approved by the independent trustees of
LREIT. Mr. Arni Thorsteinson abstained from voting on the Proposed
Transaction. An independent third party appraisal was obtained which
supports the consideration to be received by LREIT for the Property.
The closing of the Proposed Transaction and the repayment of the second
mortgage bond are scheduled to occur by December 31, 2013 and are
subject to the receipt of final regulatory approval.
LREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.G (Series
G Convertible Debentures), LRT.NT.A (Second Mortgage Bonds due December
24, 2015), LRT.WT (Warrants expiring March 9, 2015) and LRT.WT.A
(Warrants expiring December 23, 2015). For further information on
LREIT, please visit our website at www.lreit.com.
The TSX has not reviewed or approved the contents of this press release
and does not accept responsibility for the adequacy or accuracy of this
This press release contains certain statements regarding the proposed
transaction described herein that could be considered as
forward-looking information. The forward-looking information is
subject to certain risks and uncertainties, which could result in
actual results differing materially from the forward-looking
statements. There can be no certainty that the transaction will be
completed within the timeline set forth herein or all at.
SOURCE: Lanesborough Real Estate Investment Trust
For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: email@example.com