NEW GLASGOW, NS, Dec. 19, 2016 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced that it has recently closed on the sale of four properties to Pro Real Estate Investment Trust ("Pro REIT"). Proceeds from the four properties were approximately $21.4 million excluding normal closing and transaction costs. The transaction comprises three properties located in Nova Scotia and one property in Prince Edward Island with a total gross leasable area of 215,000 square feet. Further details on the four properties are reflected in the table below:
| Property |
Municipality |
Province |
Property Type |
Gross Leasable Area |
| Fort Edward Plaza |
Windsor |
NS |
Retail Plaza |
122,000 |
| Glace Bay Foodland |
Glace Bay |
NS |
Retail Freestanding |
17,000 |
| Sydney River Sobeys |
Sydney River |
NS |
Retail Freestanding |
51,000 |
| Montague Sobeys |
Montague |
PE |
Retail Freestanding |
25,000 |
Since 2013, Crombie has sold nine Atlantic Canada properties in three separate transactions to Pro REIT. These transactions account for 530,000 square feet of gross leasable area and total sale proceeds of $60.3 million.
On December 8th Crombie also completed the sale of Carleton Place Mews in Carleton Place, Ontario to a third party for sale proceeds of $10.8 million. Carleton Place Mews is a retail plaza with total gross leasable area of 80,000 square feet.
The net proceeds from both transactions will be initially used to repay Crombie's revolving credit facility and for general trust purposes including future acquisition and development activities.
Donald E. Clow, President and CEO of Crombie commented: "This was a successful year for Crombie with acquisitions exceeding $560 million and 2.6 million square feet in addition to capital recycling through dispositions totaling $195 million representing 1.2 million square feet. We are pleased with our ongoing progress in repositioning our portfolio as we continue to execute on our strategy of increasing our urban and suburban presence and focus on recycling capital to fund future acquisitions and mixed use development projects."
ABOUT CROMBIE
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 currently owns a portfolio of 280 commercial properties across Canada, comprising approximately 19.1 million square feet with a strategy to own, operate and develop a portfolio of high quality grocery and drug store anchored shopping centers, 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.
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 include statements about the expected timing of the closing of the disposition of the remaining property and statements regarding the anticipated use of the net proceeds of the disposition. 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 2015 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. Crombie can give no assurance that actual results will be consistent with these forward-looking statements.
SOURCE Crombie REIT
Glenn Hynes, FCPA, FCA, Executive Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100
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