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.
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
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