WINNIPEG, Aug. 21 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced that it has entered into an unconditional
agreement to sell a 61-suite apartment property in Edmonton, Alberta, known as
Nova Villa, for $6.7 million. LREIT will provide second mortgage financing in
the amount of $0.5 million, bearing interest at 5% for a five year term. The
sale is scheduled for closing on October 1, 2009 and is expected to result in
net cash to LREIT of approximately $2.27 million, after expenses and closing
adjustments, and the repayment of approximately $3.76 million of first
mortgage debt. LREIT will use the net cash from the sale to repay other higher
cost interim mortgage debt.
LREIT acquired the property in May 2004 for $5.4 million.
Pursuant to LREIT's previously announced plans to divest assets and
reduce debt, additional property sales are under conditional contract or sale
listings and are expected to close during the fourth quarter of 2009.
LREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.F (Series F
Convertible Debentures) and LRT.DB.G (Series G Convertible Debentures). 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. For further information on LREIT, please visit our
website at www.lreit.com.
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 Toronto Stock Exchange 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, Tel: (204) 475-9090, Fax: (204) 452-5505,