Stephan Burnett
Northern News Services

Yellowknife (Mar 24/04) - Northern Property Real Estate Investment Trust has entered into three purchase agreements for residential properties in Yellowknife, Iqaluit and Fort McMurray.

The Yellowknife properties are Range Lake Manors, North and South, located at 490 and 492 Range Lake Road. They contain 106 units in two, three-storey, walk-up apartments. The acquisition price is $6.5 million cash.

Sale is scheduled to close March 31

The building will receive approximately $800,000 in capital improvements after it is acquired. The sale is scheduled to close March 31, 2004.

Danny and Ivy Yee of Calgary, through numbered company 403708 Alberta Ltd., currently own the properties.

Tenders on the capital improvements for the buildings will not be requested until two to three weeks after acquisition.

"We'll go in and start doing preliminary planning and assessment work and once we have that we'll go to contract and material orders. Generally, we use our own forces (in construction renovations) and will subcontract parts of it, which will be determined based on the analysis," said Northern Property Real Estate Investment Trust asset manager Richard Anda.

In Iqaluit, the agreement to purchase is for seven duplexes, which contain 14 three-bedroom units.

The acquisition price is $3.75 million, including assumption of an existing mortgage of approximately $2.55 million. The sale is scheduled to close March 31, 2004.

The Fort McMurray property is a 51-unit, three-storey walk up apartment.

The acquisition price is $3.9 million, including assumption of an existing mortgage of approximately $1.48 million.