WINNIPEG, Dec. 7, 2012 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) announced today that it has closed the sale of Riverside Terrace for $44 million, subject to customary closing adjustments. Riverside Terrace is a 181 suite seniors' complex located in Saskatoon, Saskatchewan, consisting of 157 independent living suites and 24 suites of intermediate care. Riverside Terrace was acquired by LREIT in July 2005 for $24 million.
The $44 million net sale price was satisfied by 1) assumption by the purchaser of the existing first mortgage loan in the amount of $31.23 million, 2) LREIT providing take-back second mortgage financing to the purchaser in the amount of $3.2 million, bearing interest at 6% for a five year term, with interest only payments due monthly; and 3) the balance of approximately $9.26 million (net of closing adjustments) in cash.
LREIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.G (Series G Debentures), LRT.NT.A (Second Mortgage Bonds due December 24, 2015), LRT.WT (Warrants expiring March 9, 2015) and LRT.WT.A (Warrants expiring December 23, 2015). The objective of LREIT is to provide Unitholders with stable cash distributions from investment in a diversified portfolio of quality real estate properties. For further information on LREIT, please visit our website at www.lreit.com.
The TSX 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.
This press release contains certain statements regarding the proposed transaction described herein 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. There can be no certainty that the transaction will be completed within the timeline set forth herein or all at.
SOURCE: Lanesborough Real Estate Investment Trust
For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: email@example.com