WINNIPEG, MB, March 3, 2023 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSXV: LRT.UN) announces today that it has completed the sale of: (i) Laird's Landing, 302 Parsons Creek Drive, Fort McMurray, Alberta ("Laird's Landing"); (ii) Lakewood Manor Apartments, 108 Loutit Road, Fort McMurray, Alberta ("Lakewood Manor"); and (iii) Westhaven Manor, 5610 11 Avenue, Edson, Alberta ("Westhaven Manor" and together with Laird's Landing and Lakewood Manor, the "Properties") to 7254751 Manitoba Ltd. ("725") for aggregate consideration of $43,010,000 plus closing adjustments in the approximate amount of $128,744, payable as follows: (i) through the assumption of the mortgages on the Properties by 725 in the approximate aggregate amount of $22,891,289; (ii) through the assumption of an accrued mortgage fee on Lakewood Manor in the amount of $169,500; (iii) through the reduction of amounts owing under the line of credit from 2668921 Manitoba Ltd., a sister company of 725, to LREIT in the approximate amount of $20,002,955; and (iv) through deposits paid of $75,000 (collectively, the "Transaction"). LREIT issued a press release previously announcing the Transaction on January 31, 2023.
725 is a company controlled by an insider of LREIT. Accordingly, the Transaction is a "Related Party Transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101").
As LREIT is not listed on the Toronto Stock Exchange, in accordance with Section 5.5(b) of MI 61-101, the Transaction is exempt from the formal valuation requirements of MI 61-101. As LREIT is experiencing financial hardship, as defined in Section 5.5(g) of MI 61-101, LREIT is also exempt from the requirement to obtain approval of a majority of the minority unitholders of LREIT for the Transaction.
LREIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol LRT.UN (Trust Units). For further information on LREIT, please visit our website at www.lreit.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release are "forward-looking statements" that reflect the expectations of management regarding the Transaction. Readers are cautioned not to place undue reliance on forward-looking information. All statements other than statements of historical fact contained herein are forward-looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward looking statements involve significant risks and uncertainties. A number of factors that could cause actual results to differ materially from the results discussed in forward-looking statements are discussed in LREIT's management discussion and analysis for the nine-month period ended September 30, 2022 available on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, LREIT cannot assure investors that actual results will be consistent with these forward-looking statements.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Forward-looking statements are made as of the date hereof, or such other date specified in such statements, and neither LREIT nor any other person assumes any obligation to update or revise such forward-looking statements to reflect new information, events or circumstances, except as expressly required by applicable securities law.
SOURCE Lanesborough Real Estate Investment Trust
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