div increaseWINNIPEG, MB, Feb. 23 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") announced today that it has signed a Letter of Intent to
acquire a 90 room, limited service hotel in central Alberta. This purchase is
in addition to a previously announced pending purchase of a 45 room, limited
service hotel in central Alberta which, together, would bring the number of
Lakeview Hotel REIT hotels in that province to six. Subject to due diligence,
closing of these purchases is expected to take place between April and June,
2006.
The combined purchase price of the hotels is $16,200,000. Approximately
65% of the purchase price will be satisfied with five year term, first
mortgage loans bearing interest at fixed rates equal to the 5 year Government
of Canada Bond rate plus 2.10% amortized over 20 years. Wellington West
Capital Inc. has been retained and will on a best efforts basis raise the
balance of funds necessary to satisfy the purchase price.
The previously announced purchase of an 85 room limited service hotel
located in the Greater Toronto Area is scheduled to close on March 17, 2006.
Lakeview REIT is pleased to declare that its regular monthly distribution
of $0.03 per unit will be paid on March 31st, 2006 to Unitholders of record on
February 28th, 2006. The Trustees of Lakeview REIT have approved a subsequent
$0.03 distribution which will be paid on April 28th, 2006 to Unitholders of
record on March 31st, 2006.
Additionally, based on the accretive nature of the two Alberta hotel
acquisitions, the Trustees of Lakeview REIT have approved an increase in its
monthly distributions from $0.03 to $0.0333 or from $0.36 to $0.40 on an
annual basis. This increase will take effect with the April distribution which
will be paid on May 31st, 2006 to Unitholders of record on April 28th, 2006.
Lakeview REIT is a real estate investment trust, which is listed on the
TSX Venture Exchange under the symbol "LHR.UN". Lakeview REIT receives income
from ownership, management and licensing of hotel properties. Lakeview REIT's
objective is to provide Unitholders with stable and growing cash distributions
through investment in an expanding portfolio of hotel properties across
Canada. For information on Lakeview Hotels please visit
www.lakeviewhotels.com.
The TSX Venture Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy or
accuracy of its contents.