WINNIPEG, Oct. 1 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that it has completed the previously
announced acquisition of an apartment/office complex in Winnipeg, Manitoba
known as Colony Square. LREIT had previously owned a 1.5% beneficial interest
and with the acquisition now owns 100% of Colony Square. It had previously
been announced that existing owners, who held an aggregate of 9% beneficial
interest would remain as part of the ownership syndicate.
Colony Square comprises 1.89 acres located on the south side of Portage
Avenue in downtown Winnipeg across from the University of Winnipeg. The
complex consists of two apartment towers of sixteen and seventeen storeys,
respectively, a seven-storey office building and a 270-stall underground
parkade. The two apartment towers contain a total of 428 suites, comprised of
72 studio/bachelor suites, 296 one-bedroom suites and 60 two-bedroom suites.
The office building contains 80,935 square feet of leasable area, with an
additional 2,255 square feet of leasable commercial area on the main floors of
the apartment towers.
The purchase price of $38 Million, subject to the usual closing
adjustments, was funded by the assumption of a $20.8 Million first mortgage
loan, bearing interest at 5.5% and maturing in April 2015, and the balance of
approximately $17.2 Million from the proceeds of upward refinanced mortgage
loans on existing LREIT properties.
Colony Square is 100% occupied and the 2009 net operating income is
projected to be $2.9 Million.
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 and LRT.DB.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. There are currently
17,565,205 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, or
Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505,