Lanesborough REIT completes acquisition of Yellowknife property

    WINNIPEG, March 23 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that it has completed the acquisition
of a 106-suite multi-family apartment property located in Yellowknife, NT for
$15 Million, subject to the usual closing adjustments. The four-storey
property, currently known as Nova Court, was completed in 2005 and is
comprised of 76 one-bedroom, 28 two-bedroom and two three-bedroom suites. 54
of the one-bedroom suites, which are all located on the main and second
floors, are completely furnished. The main floor also contains approximately
8,400 square feet of commercial space. The property is well located on the
corner of Range Lake Road and Old Airport Road, adjacent to Stanton Hospital.
    The purchase price of $15 Million, which represents an estimated
capitalization rate of 11%, was funded by the assumption of a first mortgage
loan in the approximate amount of $9.28 Million and the balance in cash. The
first mortgage loan bears interest at 4.8% and matures in January 2016.
    The acquisition of Nova Court increases LREIT's portfolio of newly
constructed apartment properties in Yellowknife to three properties,
comprising a total of 276 housing units.

    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 17,424,874 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, Tel: (204) 475-9090, Fax: (204) 452-5505,

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Lanesborough Real Estate Investment Trust

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