A $44 Million Sale for Lanesborough REIT

Lanesborough Real Estate Investment Trust announced that it has closed the sale of Riverside Terrace for $44 million, subject to customary closing adjustments. Riverside Terrace is a 181 suite seniors' complex located in Saskatoon, Saskatchewan, consisting of 157 independent living suites and 24 suites of intermediate care. Riverside Terrace was acquired by LREIT in July 2005 for $24 million.

 
The $44 million net sale price was satisfied by 1) assumption by the purchaser of the existing first mortgage loan in the amount of $31.23 million, 2) LREIT providing take-back second mortgage financing to the purchaser in the amount of $3.2 million, bearing interest at 6% for a five year term, with interest only payments due monthly; and 3) the balance of approximately $9.26 million (net of closing adjustments) in cash.

on December 16, 2012