Lanesborough REIT completes the acquisition of Siena Apartments in Fort McMurray - Total Fort McMurray portfolio now totals 1,167 apartment and townhouse units

    WINNIPEG, July 9 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that it has completed the previously
announced acquisition of Siena Apartments in Fort McMurray, Alberta. The
property consists of a four-storey, 66-suite luxury apartment building, with a
93-stall underground parkade and is comprised of six one-bedroom and 60
two- bedroom suites. All of the suites are fully furnished and have individual
condominium title.
    The purchase price of $30 Million, subject to the usual closing
adjustments, was funded by a new first mortgage loan in the amount of
$21 Million, a vendor take-back mortgage loan of $4 Million and the balance in
cash. The first mortgage loan bears interest at a rate of 5.73% for a
five-year term and has a 20-year amortization. The vendor take-back mortgage
loan is a 5% interest only mortgage and is due on July 1, 2010.
    The property is 100% leased to a major oil sands operating company until
May 1, 2012. The lease agreement provides the tenant with an option to extend
the lease in 2012 for an additional five years at the current market rents at
that time.

    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 17,633,844 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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