Lanesborough REIT Completes Sale of Eight Properties for $40.3 Million and Reports Gain on Sale of $8.98 Million

WINNIPEG, Dec. 7 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) announced today that it has completed the previously announced sales of eight apartment properties. Details of the sales transactions are as follows:

 - 404-suite portfolio of six apartment properties in Prince Albert, Saskatchewan, known as Marquis Towers, Borden Estates, Cedar Village, MGM Apartments, Carlton Manor and Riverside Apartments. The portfolio was sold for $17.4 million and resulted in net cash to LREIT of approximately $6.24 million, net of expenses, closing adjustments, and approximately $10.65 million of first mortgage debt either repaid or assumed by the purchaser. The gain on sale was approximately $2.87 million. - 93-suite apartment property in Sherwood Park, Alberta, known as Broadview Meadows. The property was sold for $9.1 million and resulted in net cash to LREIT of approximately $3.6 million, net of expenses, closing adjustments, and the assumption by the purchaser of approximately $5.23 million of first mortgage debt. The gain on sale was approximately $2.84 million. - 183-suite apartment property in Surrey, British Columbia, known as Greenwood Gardens. The sale price was $13.82 million of which $6.55 million was satisfied by LREIT providing second mortgage financing to the purchaser for an 18-month term, bearing interest at 3% for the first six months and 6% thereafter. Net of the second mortgage, the sale resulted in net cash to LREIT of approximately $2 million, after expenses, closing adjustments and the assumption by the purchaser of approximately $5.21 million of first mortgage debt. The gain on sale was approximately $3.27 million. 

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