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


    WINNIPEG, March 28 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") announced today that it has closed it's previously announced
public offering (the "Offering") of 51-month Senior Secured Debentures (the
"Debentures"). The terms of the Offering were first announced on March 14,
2008. Pursuant to the closing of the Offering, Lakeview REIT issued 10,250
Debentures, each having a principal amount of $1,000, for aggregate gross
proceeds of $10,250,000. The Debentures bear interest at a rate of 8.125% per
annum, with monthly interest payments, and will mature on June 20, 2012. The
syndicate was led by Thomas Weisel Partners Canada Inc. and included
Wellington West Capital Inc.
    Lakeview REIT intends to use the net proceeds of the Offering to fund the
purchase of its 17th hotel, the 75 room Four Points by Sheraton Hotel in
Prince George, British Columbia for $9,675,000. The Debentures will be secured
by a first charge on the Prince George hotel. An additional approximately
$300,000 will be spent to finish a partially developed indoor pool area at the
hotel. The acquisition is scheduled to close on April 1, 2008.
    The Debentures sold pursuant to the Offering have been approved for
listing on the TSX Venture Exchange and will trade under the ticker symbol

    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

    This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the Debentures in the United States. The Debentures
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or the U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

    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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