WINNIPEG, Feb. 1 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) announced today that it has entered into an unconditional agreement to sell a 65,283 square foot shopping centre property in Winnipeg, Manitoba, known as McIvor Mall for $11.2 million. LREIT will provide second mortgage financing to the purchaser in the amount of $3.0 million, bearing interest at 5.5% and maturing on July 1, 2014. Net of the second mortgage loan, the sale is expected to result in net cash to LREIT of approximately $3.1 million, after expenses, closing adjustments and the assumption by the purchaser of approximately $4.8 million of first mortgage debt. The property was acquired by LREIT in February 2004 for $6.7 million.
The sale is scheduled to close on March 1 2010. LREIT will use the net cash from the sale to repay debt and for general working capital purposes
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
SOURCE Lanesborough Real Estate Investment Trust
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: firstname.lastname@example.org