WINNIPEG, MB, Jan. 31,
2023 /CNW/ - Lanesborough Real Estate Investment
Trust ("LREIT") (TSXV: LRT.UN) announces today that it has
entered into three asset purchase agreements (the
"Agreements") in connection with 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 forbearance 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").
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.
Pursuant to the terms of the Agreements and the policies of the
TSX Venture Exchange (the "Exchange"), the closing of the
Transaction remains subject to the final approval of the
Exchange.
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, 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
