Financially strapped Lanesborough REIT has agreed to sell an apartment property in Fort McMurray, Alta., to a buyer controlled by an insider.
Winnipeg-based Lanesborough said it will divest the Nelson Ridge Estates property at 101 Loutit Road to 7254751 Manitoba Ltd. (725) for $22 million mainly through mortgage assumptions. The buyer will also provide a $20,000 cash deposit to Lanesborough, extend a line of credit to Lanesborough by $228,823.62 and pay the balance of the purchase price in cash on closing.
Arni Thorsteinson, Lanesborough’s vice-chair, controls 725. Since it is experiencing financial hardship, Lanesborough is legally exempt from the requirement to obtain approval its minority unitholders, the REIT said in a news release.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.