7254751 Manitoba Ltd has entered into an asset purchase agreement to acquire Nelson Ridge Estates, 101 Loutit Road, Fort McMurray, Alberta from Lanesborough Real Estate Investment Trust (TSXV:LRT.UN) for CAD 22 million.

7254751 Manitoba Ltd has entered into an asset purchase agreement to acquire Nelson Ridge Estates, 101 Loutit Road, Fort McMurray, Alberta from Lanesborough Real Estate Investment Trust (TSXV:LRT.UN) for CAD 22 million on October 26, 2023. Consideration is payable as follows: (i) a CAD 20,000 cash deposit payable to LREIT within 3 business days of the effective date of the Agreement; (ii) CAD 14,593,259.05 through the assumption of the first mortgage on the Property by 725; (iii) CAD 7,615,564.57 through the assumption of the second mortgage on the Property by 725; (iv) an increase in the line of credit from 2668921 Manitoba Ltd., a sister company of 725, to LREIT by CAD 228,823.62; and (v) the balance of the purchase price payable in cash on closing. The closing of the Transaction is subject to the condition that 725 arrange new and restructed mortgage financing for its acquisition of the Property on terms satisfactory to 725 and the final approval of the Exchange.

It is anticipated that the Transaction will close on or about May 1, 2024.