Lanesborough Real Estate Investment Trust (LREIT) announced that it has completed the sale of the following two properties, with an effective date of May 1, 2016:

• Willowdale Gardens, an 88-suite apartment property located in Brandon, Manitoba, was sold for $9 million. The sale resulted in net cash proceeds to LREIT, after repayment of the first mortgage loan and the standard closing costs and adjustments, of approximately $5.95 million. Willowdale Gardens was acquired by LREIT in 2006 for $4.3 million.

• Beck Court, a 120-suite apartment property located in Yellowknife, NWT, was sold for $23 million. The sale resulted in net cash proceeds to LREIT of approximately $3.4 million after the assumption by the purchaser of the existing first mortgage loan in the amount of $15.6 million and vendor take-back financing provided by LREIT in the amount of $4 million. The vendor take-back financing bears interest at 4%, with monthly interest only payments and a six-year term. Beck Court was acquired by LREIT in 2004 for $14.3 million.

The total net cash proceeds in the approximate amount of $9.35 million were used to fully repay a $5.4 million second mortgage loan, which had a secured charge on Willowdale Gardens, and to pay down the revolving loan by $3.95 million.

As part of the sale agreement for both properties, LREIT and the purchaser have agreed that, in the event that either property is re-sold within a 24-month period, LREIT will share equally in any profit that is realized as a result of such sale.