Crombie REIT announces closing of $45 million offering of convertible
unsecured subordinated debentures

STELLARTON, NS, Feb. 8 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it has closed the previously announced public offering by way of a bought-deal of $45 million of convertible unsecured subordinated debentures (the "Debentures").

The Debentures have a maturity date of June 30, 2017 . The Debentures have a coupon of 5.75% per annum and will pay interest semi-annually in arrears on June 30 and December 31 in each year commencing on June 30, 2010 . Each $1,000 principal amount of Debenture is convertible into approximately 65.3595 units of Crombie, at any time, at the option of the holder, based on a conversion price of $15.30 per unit.

Crombie will use the net proceeds from this offering to repay debt.

The underwriting syndicate for the public offering was co-led by CIBC World Markets Inc. and TD Securities Inc. and included Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Financial Ltd., Macquarie Capital Markets Canada Ltd., Beacon Securities Limited, Raymond James Ltd. and Jennings Capital Inc.

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 113 commercial properties in seven provinces, comprising approximately 11.2 million square feet of rentable space.

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 2008 management's discussion and analysis, and of Crombie's management's discussion and analysis for the quarter ended September 30, 2009 , and in the "Risks" section of Crombie's annual information form in respect of the year ended December 31, 2008 , 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: Scott Ball, C.A., Vice President, Chief Financial Officer and Secretary, Crombie REIT, [phone]