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LANESBOROUGH REIT ANNOUNCES $3.4 MILLION SALE OF EDMONTON PROPERTY

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  Published in Business and Finance on Thursday, October 7th 2010 at 15:01 GMT by Market Wire
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WINNIPEG, Oct 7 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) announced today that it has entered into an unconditional agreement to sell a 32-suite apartment property in Edmonton, Alberta, known as Nova Manor for $3,415,000.  LREIT will provide second mortgage financing to the purchaser in the amount of $786,750, bearing interest at 6% and due on January 1, 2014. Net of the second mortgage, the sale is expected to result in net cash to LREIT of approximately $450,000, after expenses, closing adjustments and the assumption by the purchaser of approximately $2,116,000 of first mortgage debt.  The property was acquired by LREIT in May 2004 for $2,615,000.

The sale is scheduled to be completed on October 15, 2010, with an effective closing date of September 30, 2010.  LREIT will use the net cash from the sale to repay debt.

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), LRT.DB.G (Series G Convertible Debentures), LRT.NT (Second Mortgage Bonds) and LRT.WT (Warrants).  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