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A Safeway store in Calgary on June 13, 2013. Crombie REIT is paying $990-million for 68 properties that are currently anchored by Canada Safeway stores, a deal that has been anticipated since the recent marriage of Sobeys Inc. and Canada Safeway Ltd.
A Safeway store in Calgary on June 13, 2013. Crombie REIT is paying $990-million for 68 properties that are currently anchored by Canada Safeway stores, a deal that has been anticipated since the recent marriage of Sobeys Inc. and Canada Safeway Ltd.
(Todd Korol For The Globe and Mail)

Crombie REIT buys 68 Safeway properties for almost $1-billion

Crombie REIT is paying $990-million for 68 properties that are anchored by Canada Safeway stores, a deal that has been anticipated since the recent marriage of Sobeys Inc. and Canada Safeway Ltd. and that is expected to have a significant impact on the real estate investment trust.

Sobeys’ parent company, Stellarton, N.S.-based Empire Co. Ltd., announced last month that it was paying $5.8-billion for 213 Canadian Safeway stores, and said that it would raise money to help pay for the deal by selling about $1-billion worth of Safeway real estate and then leasing it back. Crombie REIT had a right of first offer on any such deal, and was widely expected to scoop up the properties. (Crombie was a creation of Empire Co., which spun the REIT off in 2006 and still owns about 40 per cent of it.)