Lanesborough REIT omits second quarter distribution, offers assets for sale and renews mortgage financing

    WINNIPEG, June 16 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that due to the weakness of 2009
rental housing operations in its major market of Fort McMurray, Alberta it is
omitting its quarterly distribution for the quarter ending June 30, 2009 in
the previously planned amount of $0.06 per trust unit.
    The 2009 slowdown in capital expenditure on the oil sands developments in
northern Alberta has substantially reduced the 2009 occupancy and rental rates
on LREIT's portfolio of 1,167 rental apartments in Fort McMurray. Future
distributions to Unitholders will be dependent on the pace of the anticipated
recovery of the Fort McMurray rental housing market.
    LREIT is proceeding with its previously announced $150 million asset
divestiture program in order to reduce its overall debt level. Two properties
are under conditional contract for sale.
    During the month of June, LREIT renewed mortgage loans in the amount of
$7.5 million and continues to negotiate the $45 million of mortgage financing
arrangements required to complete the acquisition of the new 160-suite Parsons
Landing rental apartment project in Fort McMurray.


    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

    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,

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Lanesborough Real Estate Investment Trust

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