Lakeview Hotel REIT Announces $10.25 Million Public Offering of Secured Debentures


    WINNIPEG, March 14 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") announced today that it has entered into an agreement with a
syndicate of agents to issue to the public on a best efforts basis $10,250,000
of 51-month Senior Secured Debentures (the "Debentures"). The syndicate will
be led by Thomas Weisel Partners Canada Inc. and includes Wellington West
Capital Inc.
    The Debentures will bear an interest rate of 8.125% per annum, with
monthly interest payments, and will mature on June 20, 2012. The payment of
the principal and the interest will have priority over the payment of cash
distributions on the trust units and coupon payments of the convertible
debentures of Lakeview REIT, and will rank pari passu in right of payment to
the senior secured indebtedness of Lakeview REIT. The Offering will be made by
way of short form prospectus and Lakeview REIT will apply to the TSX Venture
Exchange (the "Exchange") to list the Debentures sold pursuant to the
Offering. Listing will be subject to Lakeview REIT satisfying all requirements
of the Exchange.
    Lakeview REIT is also pleased to announce that it has entered into
Purchase and Sale Agreements for the acquisition of its 17th hotel, the
75 room Four Points by Sheraton Hotel in Prince George, British Columbia for
$9,675,000. An additional approximately $300,000 will be spent to finish a
partially developed indoor pool area at the hotel. The purchase price is being
satisfied from the net proceeds of the Offering, and the Debentures will be
secured by a first charge on the Prince George hotel.
    Prince George is known as BC's "northern capital" and is the principal
urban and industrial centre in BC's largest forest region. It serves as a
staging centre for mining companies operating in the mineral-rich central
region of BC, has a strong and diverse local economy, and is ideally located
to serve as a gateway between Northern BC and the key economic regions of
Western Canada. The Four Points by Sheraton, which opened in July, 2007, is an
outstanding facility with oversized rooms, an exceptional fitness facility, a
dining lounge and meeting space. The property has a strong competitive
location, clearly visible and proximate to a major highway. The completion of
the acquisition is scheduled to take place on April 1, 2008.

    Lakeview REIT is a real estate investment trust, which is listed on the
TSX Venture Exchange under the symbol "LHR.UN". Lakeview REIT receives income
from ownership, management and licensing of hotel properties. Lakeview REIT's
objective is to provide Unitholders with stable and growing cash distributions
through an investment in an expanding portfolio of hotel properties across
Canada. For further information on Lakeview REIT please visit our website

    The TSX Venture Exchange has not reviewed or approved the contents of
    this press release and does not accept responsibility for the adequacy or
    accuracy of its contents.

    %SEDAR: 00020441E

For further information:

For further information: Keith Levit, President, or Avrum Senensky, Vice
President, Finance, Tel: (204) 947-1161, Fax: (204) 957-1697, Email

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Lakeview Hotel Real Estate Investment Trust

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