WINNIPEG, Jan. 6, 2014 /CNW/ - Lanesborough Real Estate Investment Trust
(TSX: LRT.UN) ("LREIT") announced today that it has completed the previously announced sale
of the property known as Nova Court located at 476 Range Lake Road in
Yellowknife, Northwest Territories (the "Property"). The Property was sold for $21.68 million and resulted in net
proceeds to LREIT of approximately $13.64 million, after expenses,
closing adjustments and the assumption by the purchaser of
approximately $8.06 million of first mortgage debt.
The Property was purchased by LREIT in March 2007 for $15 million
The proceeds are being used to prepay $10 million principal amount of
the 9% second mortgage bonds due December 24, 2015 (TSX: LRT.NT.A) and
for the repayment of other debt and/or working capital purposes.
The purchaser of the Property is Temple Hotels Inc., a hotel investment
company which owns and operates 26 hotel properties.
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