NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S.
NEWS WIRE SERVICES
WINNIPEG, Aug. 6 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") is pleased to announce that it has acquired the 81 room Days
Inn - Ottawa Airport. The Days Inn - Ottawa Airport, which opened in April,
2002, is located on Hunt Club Road approximately two kilometres from the
Ottawa International Airport. The property is subject to a 40 year land lease
and a 10 year right of renewal with the Ottawa Macdonald-Cartier International
Airport Authority. The acquisition also included a free standing, subleased,
Tim Horton's restaurant. The purchase price of $10,500,000 has been satisfied
by way of a vendor take back loan and through credit facilities available to
Lakeview REIT. Lakeview REIT is in the process of arranging a first mortgage
loan to replace the vendor take back loan. The acquisition will be immediately
accretive to the cash flow of the REIT.
The Days Inn Ottawa Airport hotel acquisition is the 18th hotel in the
Lakeview REIT portfolio and represents the second hotel in the portfolio in a
major Ontario market. The acquisition provides Lakeview REIT with both
geographic diversification as well as diversification away from properties
tied into oil and gas drilling and servicing.
In other news, Lakeview REIT has advanced to date $5,000,000 under its
mezzanine loan program. All loans bear annual interest at 12% paid monthly.
The first property under the program to be licensed as a Lakeview Inn & Suites
will be located in Tumbler Ridge, British Columbia. Conversion to a Lakeview
Inn & Suites will take place on September 1st. Tumbler Ridge will be the 20th
Lakeview Inn & Suites flagged property, and the 6th property outside the
Lakeview REIT portfolio, to pay license fees to Lakeview REIT. Lakeview REIT
has an option to purchase all hotels in its mezzanine loan program.
The Trustees of Lakeview REIT announced today the issuance of an
aggregate total of 109,500 options to purchase Lakeview REIT Units to the
senior management and executives of the Trust. The options are exercisable for
a period of 5 years expiring August 1, 2013 at an exercise price of $3.50. The
exercise price is the volume weighted average price for the 20 business days
ended August 1st, 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.
For further information:
For further information: Keith Levit, President, or Avrum Senensky, Vice
President Finance, Tel: (204) 947-1161, Fax: (204) 957-1697, Email