Lanesborough REIT Completes Sale of Eight Properties for $40.3 Million and
Reports Gain on Sale of $8.98 Million

WINNIPEG , Dec. 7 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) announced today that it has completed the previously announced sales of eight apartment properties. Details of the sales transactions are as follows:

    
    -   404-suite portfolio of six apartment properties in Prince Albert,
        Saskatchewan, known as Marquis Towers, Borden Estates, Cedar Village,
        MGM Apartments, Carlton Manor and Riverside Apartments. The portfolio
        was sold for $17.4 million and resulted in net cash to LREIT of
        approximately $6.24 million, net of expenses, closing adjustments,
        and approximately $10.65 million of first mortgage debt either repaid
        or assumed by the purchaser. The gain on sale was approximately
        $2.87 million.
    -   93-suite apartment property in Sherwood Park, Alberta, known as
        Broadview Meadows. The property was sold for $9.1 million and
        resulted in net cash to LREIT of approximately $3.6 million, net of
        expenses, closing adjustments, and the assumption by the purchaser of
        approximately $5.23 million of first mortgage debt. The gain on sale
        was approximately $2.84 million.
    -   183-suite apartment property in Surrey, British Columbia, known as
        Greenwood Gardens. The sale price was $13.82 million of which
        $6.55 million was satisfied by LREIT providing second mortgage
        financing to the purchaser for an 18-month term, bearing interest at
        3% for the first six months and 6% thereafter. Net of the second
        mortgage, the sale resulted in net cash to LREIT of approximately
        $2 million, after expenses, closing adjustments and the assumption by
        the purchaser of approximately $5.21 million of first mortgage debt.
        The gain on sale was approximately $3.27 million.
    

LREIT will use the $11.84 million of net cash from the property sales to repay maturing debt and for general working capital purposes. Further asset sales are expected during 2010 as part of the property divestiture programme announced earlier this year.

    
    ABOUT LREIT
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LREIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.F (Series F Convertible Debentures) and LRT.DB.G (Series G Convertible Debentures). The objective of LREIT is to provide Unitholders with stable cash distributions from investment in a geographically diversified Canadian portfolio of quality real estate properties. For further information on LREIT, please visit our website at www.lreit.com.

This press release contains certain statements that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements.

The Toronto Stock Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release

For further information: Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations, Tel: [phone], Fax: [phone], Email: [email protected]