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Press release from Marketwire

Crombie REIT Announces $102 Million of Property Acquisitions With Sobeys and $50 Million Unit Offering

Thursday, July 08, 2010

Crombie REIT Announces $102 Million of Property Acquisitions With Sobeys and $50 Million Unit Offering16:17 EDT Thursday, July 08, 2010STELLARTON, NOVA SCOTIA--(Marketwire - July 8, 2010) - NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATESCrombie Real Estate Investment Trust ("Crombie") (TSX:CRR.UN) announced today that it has entered into a non-binding letter of intent for the acquisition of $102 million of Canadian retail properties with Sobeys (a wholly owned subsidiary of Empire Company Limited ("Empire") (TSX:EMP.A)) comprising a portfolio of 11 retail properties (the "Portfolio"). The Portfolio totals approximately 496,630 square feet and consists of eight properties located in Western Canada, two in Ontario and one in Atlantic Canada.Crombie has also entered into an agreement with a syndicate of underwriters co-led by CIBC World Markets Inc. and TD Securities Inc., to issue, on a bought-deal basis, 2,670,000 units (the "Units") at a price of $11.05 per unit for gross proceeds of approximately $29.5 million. Concurrently, ECL Developments Limited (a wholly owned subsidiary of Empire) in satisfaction of its pre-emptive right with respect to the public Unit offering will subscribe for 1,855,000 Exchangeable LP Units at a price of $11.05 per unit for additional gross proceeds of $20.5 million. The total $50 million offering is subject to regulatory approval. Crombie intends to use the net proceeds from this offering to fund in part the acquisition of the Portfolio, additional acquisitions to be completed later in 2010 and for general trust purposes. The Sobeys portfolio acquisition is subject to completion of a definitive agreement and normal due diligence. The Portfolio is 100% leased and comprised of six freestanding Sobeys stores, four freestanding Sobeys stores with retail pads; and one Sobeys anchored plaza. Sobeys, Canada's second largest retail grocer will occupy approximately 95% of the total acquired space on lease terms averaging 20 years. The acquisition price represents a going in capitalization rate of approximately 7.7%.Donald E Clow, FCA President & CEO noted that "this acquisition is very important for Crombie as it establishes a more significant presence for the REIT in urban markets in Western Canada and Ontario. This transaction is highly complimentary to our current portfolio and to other potential acquisition opportunities expected to close later this year." The terms of the offering will be described in a short form prospectus to be filed with Canadian securities regulators. The offering of Units is expected to close on or about August 4, 2010 and is not conditional upon completion of the acquisition of the Portfolio.This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Units will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.About Crombie Crombie is an open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. The trust invests in income-producing retail, office and mixed-use properties in Canada, with a future growth strategy focused primarily on the acquisition of retail properties. Crombie currently owns a portfolio of 118 commercial properties in seven provinces, comprising approximately 11.5 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.This news release may contain forward looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements. These statements include, without limitation, statements regarding the expected use of proceeds of the offering and the expected closing date of the offering, and reflect current beliefs and are based on information currently available to management of Crombie. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the Risk Management section of Crombie's fiscal 2009 management's discussion and analysis, and of Crombie's management's discussion and analysis for the quarter ended March 31, 2010, and in the "Risks" section of Crombie's annual information form in respect of the year ended December 31, 2009, could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct. Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent with these forward-looking statements.Additional information relating to Crombie can be found on Crombie's web site at www.crombiereit.com or on the SEDAR web site for Canadian regulatory filings at www.sedar.com.FOR FURTHER INFORMATION PLEASE CONTACT: Crombie REIT Mr. Glenn Hynes, C.A. Chief Financial Officer and Secretary (902) 755-8100