WINNIPEG, Sept. 4 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that it has agreed to acquire a
160-suite apartment property, which is currently under construction in the
Timberlea area of Fort McMurray, Alberta for $60,733,000, subject to the usual
closing adjustments. The property, known as Parsons Landing Apartments, will
consist of a four-storey apartment building, with a 219-stall parkade and 37
surface parking stalls and will be comprised of 32 one-bedroom, 124
two-bedroom and four three-bedroom suites, the majority of which will be fully
furnished. Each of the suites will have individual condominium title.
The purchase price of $60,733,000 represents an estimated capitalization
rate of 8%. The acquisition will be financed with a new first mortgage loan in
the estimated amount of $45 Million and the balance in cash. It is projected
that the first mortgage loan will bear interest at an estimated rate of 5.75%
for a five-year term and will have a 25-year amortization. The acquisition
will close in two phases and will occur upon the issuance of occupancy
certificates for each of the two phases. The target closing dates are expected
to be March 2008 for Phase I and June 2008 for Phase II.
LREIT will provide a $10 Million second mortgage loan to the vendor,
which will be credited towards the purchase price. The second mortgage loan
will bear interest at 8%, payable quarterly, and shall be subordinate to a
construction mortgage in the maximum amount of $35 Million.
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 17,476,950 trust units outstanding. 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 TSX has not reviewed or approved the contents of this press release
and does not accept responsibility for the adequacy or accuracy of this
For further information:
For further information: Arni Thorsteinson, Chief Executive Officer;
Gino Romagnoli, Investor Relations, (204) 475-9090, Fax: (204) 452-5505,