Lanesborough Real Estate Investment Trust announced its intention to extend and amend its issued and outstanding 9.50% Series G Redeemable Subordinated Secured Debentures due June 30, 2018. In particular, LREIT intends to extend the maturity date of the Debentures from June 30, 2018 to June 30, 2022; reduce the interest rate payable on the Debentures commencing June 30, 2016 from 9.50% per annum to 5.00% per annum; and extend the interest payment date(s) in respect of the Debentures from semi-annually on June 30th and December 31st of each year (including the semi-annual interest payment scheduled for June 30, 2016) to June 30, 2022. No other amendments to the terms of the Debentures are being proposed. LREIT has prepared and will send to holders of the Debentures an information circular and proxy relating to a meeting of the Debenture holders to be held on June 21, 2016 at which the Debenture holders will vote on whether to approve the Amendments. The board of trustees of LREIT has determined that the Amendments are in the best interests of LREIT as they are necessary to: provide LREIT with an opportunity to pay interest and principal on the Debentures to Debentureholders when due and avoid defaulting on such payments; increase the probability of LREIT being able to endure its current financial challenges and carry on as a going concern; and obtain a reduction in the interest rate on LREIT's revolving loan facility with 2668921 Manitoba Ltd. from 12.00% per annum to 5.00% per annum (which reduction has been agreed to by 2668921 Manitoba Ltd. on the condition that Debenture holders approve the Amendments), which will further help LREIT achieve the objectives. In addition to seeking Debenture holder approval of the Amendments and obtaining the conditional agreement of 2668921 Manitoba Ltd. to reduce the interest rate on the Revolving Loan Facility, LREIT is negotiating concessions from mortgage lenders in an effort to improve LREIT's financial position and outlook as further described in LREIT's management discussion and analysis and interim financial statements for the three-month period ended March 31, 2016. In order to effect the Amendments, LREIT will be required to enter into a third supplemental trust indenture with the trustee for the Debentures, CIBC Mellon Trust Company.