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Lanesborough REIT announces sale of Winnipeg property

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^{Published in Business and Finance on Thursday, September 10th 2009 at 13:53 GMT by Market Wire}  

 WINNIPEG, Sept. 10 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) announced that it has entered into an unconditional agreement to sell a 103,209 square foot office and retail complex in Winnipeg, Manitoba, known as Kenaston Place and Kenaston Village Mall, for $18.35 million. Holdbacks totaling $832,500 will be held in trust for a maximum of 18 months to guarantee certain rent payments and tenant improvement allowances and any unexpended balance will be released to LREIT at that time. The sale is scheduled to close on October 1, 2009 and is expected to result in net cash to LREIT of approximately $6.20 million, net of the holdbacks, expenses and closing adjustments, and the assumption by the purchaser of approximately $10.89 million of first mortgage debt. LREIT will use the net cash from the sale to repay other higher cost interim mortgage debt. The property was acquired in April 2002 and has a total cost, including expansion and major renovations, of approximately $12.66 million. Pursuant to LREIT's previously announced plans to divest assets and reduce debt, additional property sales are under conditional contract or sale listings and are expected to close during the fourth quarter of 2009. ABOUT LREIT 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 [ 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 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: Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [ info@lreit.com ]