Crombie REIT Announces $103.7 Million of Dispositions

NEW GLASGOW, NS, Jan. 16, 2019 /CNW/ – Crombie Real Estate Investment Trust (“Crombie”) (TSX: CRR.UN) is pleased to announce $103.7 million in dispositions, including $41.6 million for a 50% interest in seven retail properties (the “Portfolio”) to Firm Capital Property Trust (“FCPT”).

These transactions are part of Crombie’s previously announced plan to recycle capital from the sale of certain non-core, and/or lower growth assets with proceeds to be invested in Crombie’s value-creating mixed use development pipeline. None of the assets discussed herein are included in Crombie’s mixed use development pipeline.

“We are very pleased with our capital recycling activities as we continue to validate our Net Asset Value (NAV) by disposing of properties at or above IFRS fair values”, stated Don Clow, President & CEO. “This speaks to the quality of our portfolio, the resilience of grocery and drug store anchored retail real estate and our attractiveness as a partner in completing joint ventures where Crombie retains both an ownership interest and ongoing property management.”

Pending Transactions

The $41.6 million 50% joint arrangement with FCPT consists of seven retail properties located in Alberta, Nova Scotia, Saskatchewan, Ontario and Quebec and is comprised of 296,376 square feet with closing scheduled to occur in the first quarter of 2019. Crombie will continue to manage the Portfolio via a property management agreement.

 

 

Raymond James Limited acted as exclusive advisor to Crombie in connection with the establishment of the joint arrangement.

In a second transaction, a third party purchaser has waived conditions on the $35.2 million sale of a 114,020 square foot non-grocery anchored retail centre located at 1508 Upper James Street in Hamilton, ON. The transaction is expected to close in Q1 2019.

Completed Transactions

On December 18^th 2018, Crombie closed on the sale of three drug store anchored properties totaling 51,471 square feet in London, Niagara Falls and Toronto, ON to third parties for aggregate gross proceeds of approximately $26.9 million.

 

 

About Crombie REIT

Crombie Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie is one of the country’s leading national retail property landlords with a strategy to own, operate and develop a portfolio of high quality grocery and drug store anchored shopping centres, freestanding stores and mixed use developments primarily in Canada’s top urban and suburban markets.

More information about Crombie can be found at www.crombiereit.com.

Forward-looking Information

This news release contains 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 “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “intend” and similar expressions have been used to identify these forward-looking statements.  These statements 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 2017 annual Management Discussion and Analysis under “Risk Management”, 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. Specifically, this document includes, forward-looking statements regarding the anticipated timing for completion of pending disposition transactions, which may depend on satisfaction of conditions which are outside of Crombie’s control and statements regarding Crombie’s intended use of proceeds from completed and pending dispositions, which may depend on Crombie’s financial requirements at the time proceeds are received.

SOURCE Crombie REIT

View original content: http://www.newswire.ca/en/releases/archive/January2019/16/c9950.html