Lanesborough REIT announces sale of Winnipeg property



    WINNIPEG, Sept. 10 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced that it has entered into an unconditional
agreement to sell a 103,209 square foot office and retail complex in Winnipeg,
Manitoba, known as Kenaston Place and Kenaston Village Mall, for $18.35
million. Holdbacks totaling $832,500 will be held in trust for a maximum of 18
months to guarantee certain rent payments and tenant improvement allowances
and any unexpended balance will be released to LREIT at that time. The sale is
scheduled to close on October 1, 2009 and is expected to result in net cash to
LREIT of approximately $6.20 million, net of the holdbacks, expenses and
closing adjustments, and the assumption by the purchaser of approximately
$10.89 million of first mortgage debt. LREIT will use the net cash from the
sale to repay other higher cost interim mortgage debt. The property was
acquired in April 2002 and has a total cost, including expansion and major
renovations, of approximately $12.66 million.
    Pursuant to LREIT's previously announced plans to divest assets and
reduce debt, additional property sales are under conditional contract or sale
listings and are expected to close during the fourth quarter of 2009.

    ABOUT LREIT

    LREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.F (Series F
Convertible Debentures) and LRT.DB.G (Series G Convertible Debentures). The
objective of LREIT is to provide Unitholders with stable cash distributions
from investment in a geographically diversified Canadian portfolio of quality
real estate properties. For further information on LREIT, please visit our
website at www.lreit.com.

    This press release contains certain statements 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.

    
    The Toronto Stock Exchange has not reviewed or approved the contents of
    this press release and does not accept responsibility for the adequacy or
    accuracy of this press release
    





For further information:

For further information: Arni Thorsteinson, Chief Executive Officer, or
Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505,
Email: info@lreit.com


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