Lanesborough Real Estate Investment Trust V.LRT.UN

Thoughts

[Tslayer]

Thoughts on sale of 3 properties? Looks they figured out a work-around to avoid unit holders from voting on sale.

[alkhor]

I'm willing to bet the "725" buyer is Arnie. He gets the properties this way by assuming the mortages and uses $20,000,000 of the money LREIT owes him through Shelter. This way he obtains tangible assets while at the same time reduces the LREIT debt to him. He has to spend no money to do this. If I'm right, I can almost guarentee the sale favours him over the unitholders.

[Isyckle]

According to this 2017 article, the purshasing company is affiliated to Shelter... https://www.newswire.ca/news-releases/eleven-evergreen-limited-partnership-announces-limited-partner-approval-of-proposed-sale-of-its-property-and-subsequent-dissolution-632755633.html

[quicksilver545]

I see this as asset-stripping. Notice how there is no mention of any cash to the company, or anything that might benefit unitholders; just transfer of properties for whatever they deem is the value. And no commentary in the notice as to how this might benefit the company. These two lines say it all:  "As LREIT is not listed on the Toronto Stock Exchange, in accordance with Section 5.5

[Tslayer]

So what are the prospects of shareholders if they are liquidating assets while we have no recourse?They are pulling out all the stops to ensure shareholders have no input. 

[Isyckle]

If you read the companion guide to 61-101, says that in some case the provincial securities administration could receive a formal complaint. Them not having a majority share does not reflect well vs their "doing this in good faith" + no vote + no valuation. Whatever they say, 61-101 is fully applicable to them, it's in the TSXV 5.9 policies now. But seems we would need to ask TSXV

[alkhor]

As soon as Arnie and Shelter get all their money back, including all interest due, then whatever is left is what the unitholders get. Shame the debenture holders have already lost almost everything.

[quicksilver545]

Yea and I suspect they rigged the debentureholder vote. All the delays and never announcing the results was all very sketchy.  I don't know if there will be anything left after they get all their money back. Shame on them. 

[BobTheKnob2]

[quicksilver545]

Only problem Bob is that Arnie has the ability to reject all our rejections of the board.  I think honestly our only approach is to organize as a group and call a special meeting to propose an alternative board. We are not being treated fairly in any respect as unitholders. management has never replied to any of my emails.