Lanesborough Real Estate Investment Trust (LREIT) announced that it has agreed to sell Colony Square in downtown Winnipeg, MB for $70.25 million, subject to customary closing adjustments.
The three tower complex, consisting of 428 apartment suites, approximately 83,300 square feet of commercial space and a 270-stall underground parkade, was acquired by LREIT in October 2008 for $38 million.
As a condition of the sale, LREIT has agreed to place $1.5 million in escrow on closing of the sale to be released monthly to the purchaser with respect to rent on vacant commercial space for a period of up to two years from the date of closing.
The $70.25 million sale price will be satisfied by the purchaser assuming the existing first mortgage loan in the approximate amount of $39.6 million and the balance in cash. The sale is expected to result in net cash proceeds to LREIT (net of selling costs and the $1.5 million to be placed in escrow) of approximately $28.4 million. The net cash proceeds will be used to repay operating loans and advances.
The sale is scheduled to close as of November 1, 2015.
For further information on LREIT, please visit www.lreit.com.