Stephan Burnett
Northern News Services

Yellowknife (Apr 07/04) - On March 26, Lanesborough Real Estate Investment Trust announced it had completed a $14.3 million agreement with Mike Mrdjenovich to acquire the 120 suite complex on Beck Court in Yellowknife.

Mrdjenovich was listed as president and secretary treasurer of the numbered company, 994552 NWT Ltd, the registered seller of the apartments. Mrdjenovich is also the owner of Nova Builders and the Chateau Nova Hotel and Suites.

Contrary to the announcement, Mrdjenovich said the deal is not set in stone.

"I've got news for you, that play hasn't closed yet. I'm not sure if I should comment on anything. I can't say anything. A lot of deals that are pending go sideways, that's why I'm saying the deal is pending," said Mrdjenovich.

The complex consists of two newly-constructed four-storey buildings. One contains 58 suites and the second contains 62 suites. The buildings are fully leased, with monthly rental rates ranging from $1,115 for one-bedroom suites to $1,540 for four-bedroom suites. The acquisition is expected to close in April 2004, states a news release issued by Lanesborough.

Arni Thorsteinson, chief executive officer for Lanesborough REIT, says the purchase was made because of Yellowknife's strong economy.

"Yellowknife is a growing community with heavy demand for high quality apartment accommodation. We have a waiting list for tenancies and we're in the business of investing in apartments across Canada," Thorsteinson said.

"Certainly in the Northwest Territories and Yellowknife, in particular, with the diamond mine activity and likelihood of pipeline investment, the impact on Yellowknife makes us believe the long-term investment outlook is very strong," he said.

An existing debt of $10.7 million was assumed on the property and the rest will be paid in cash, said Thorsteinson.