Lanesborough REIT announces acquisition of Saskatoon apartment property

    WINNIPEG, April 3 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that it has agreed to acquire a
113-suite multi-family apartment property located on Confederation Drive in
Saskatoon, SK for $5.6 Million, subject to the usual closing adjustments. The
property, known as Borden Place Apartments, consists of three, two and
one-half storey buildings and is comprised of 49 one-bedroom, 56 two-bedroom
and eight bachelor suites. The property was extensively renovated in 2005 and
    The purchase price of $5.6 Million represents an estimated capitalization
rate of 11%. The acquisition will be financed by a first mortgage loan in the
amount of $4.2 Million and the balance in cash. The first mortgage loan will
bear interest at 5.83% for a ten-year term. The acquisition is expected to
close on May 1, 2007.

    LREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbol LRT.UN. 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. There are
currently 17,426,874 trust units outstanding. For further information on
LREIT, please visit our website at

    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 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.

For further information:

For further information: Arni Thorsteinson, Chief Executive Officer; or
Gino Romagnoli, Investor Relations, (204) 475-9090, Fax: (204) 452-5505,

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