WINNIPEG, MB, March 15,
2024 /CNW/ - Lanesborough Real Estate Investment
Trust ("LREIT") (TSXV: LRT.UN) announces that it has
completed the sale of:
- Nelson Ridge Estates, 101 Loutit Road, Fort McMurray, Alberta (the "Nelson Ridge
Property") to 7254751 Manitoba Ltd. ("725"), pursuant to
the terms of a purchase agreement, for aggregate consideration of
$22,000,000 plus an increase in the
line of credit from 2668921 Manitoba Ltd. ("266"), a sister
company of 725, to LREIT in the approximate amount of $22,754 less closing adjustments in the
approximate amount of $295,994, paid
as follows: (i) a $20,000 cash
deposit paid to LREIT; (ii) through the assumption of the
first mortgage on the Nelson Ridge Property by 725 in the net
approximate amount of $14,040,646;
and (iii) $7,666,114 through the
assumption of the second mortgage on the Nelson Ridge Property by
725 (collectively, the "Nelson Ridge Transaction"); and
- Parsons Landing, 350 Parsons Creek Drive, Fort McMurray, Alberta (the "Parsons
Property") to 725, pursuant to the terms of a purchase
agreement, for aggregate consideration of $22,000,000 plus an increase in the line of
credit from 266 in the approximate amount of $13,889,406 less closing adjustments in the
approximate amount of $245,118, paid
as follows: (i) a $20,000 cash
deposit paid to LREIT; (ii) $35,301,788 through the assumption of the
mortgage on the Parsons Property by 725; and (iii) a credit
to 725 in the amount of $322,500,
representing 50% of the deficiencies noted in a property
condition assessment (collectively, the "Parsons
Transaction" and together with the Nelson Ridge Transaction,
the "Transactions").
725 is a company controlled by an insider of LREIT.
Accordingly, the Transactions are each 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, each of the
Transactions 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 each of the Transactions.
ABOUT LREIT
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, 2023 available on SEDAR+ at
www.sedarplus.ca. 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