Press Release

Crombie REIT Announces Disposition Update

Company Release - 5/7/2018 6:10 PM ET

NEW GLASGOW, NS, May 7, 2018 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) is pleased to provide a year to date disposition update on approximately $142 million of transaction activity as follows:

Closed Transactions ($55 million)

Dispositions closed by Crombie since the beginning of 2018 include two grocery anchored properties in Perth and Simcoe, ON and a theatre tenanted property in Red Deer, AB, for aggregate gross proceeds of approximately $50 million. The aggregate purchase price for these properties corresponds to a capitalization rate of approximately 6.5% and exceeds the IFRS fair value attributed by Crombie to the properties for financial reporting purposes. Crombie also sold land adjacent to its Belmont Market commercial development in Langford, BC for gross proceeds of approximately $5 million.

Pending Transactions ($87 million)

Due diligence conditions have been waived for Crombie to enter into a co-ownership agreement with a subsidiary of Northam Realty Advisors Limited ("Northam") which will result in the disposition of a 50% interest in a portfolio of nine Crombie Properties to Northam. The aggregate purchase price of $78 million for the 50% interest in the properties represents a capitalization rate below 5.5%. Closing is scheduled to occur in May 2018. Crombie will continue to manage the portfolio via a property management agreement.

Northam is a full-service real estate advisory firm that invests and manages European institutional and private capital in top urban markets in Canada.

Details of the nine properties are as follows:

 

Property

Address

City

Prov

Anchor
Tenant

Total
Property
GLA

Ancaster, ON

977 Golf Links Road

Hamilton

 ON

Sobeys

64,817

Brampton Plaza

8975 Chinguacousy Road

Brampton

ON

Sobeys

76,447

5048-16 Ave NW, Calgary, AB

5048 16 Avenue NW

Calgary

AB

Safeway

42,014

Millwood Sobeys, Edmonton, AB

5011 23 Avenue NW

Edmonton

AB

Sobeys

58,252

3130 Danforth Ave

3130 Danforth Avenue

Toronto

ON

Beer Store

6,450

Vancouver 8555 Granville St.

8475 Granville Street

Vancouver

BC

Safeway

47,485

Southbrook

1109 James Mowatt Trail SW

Edmonton

AB

Sobeys

45,206

Nottingham

688 Wye Road

Sherwood Park

AB

Sobeys

45,679

Calgary – McKenzie Towne

110-620 MacKenzie Towne Gate SE

Calgary

AB

Shoppers

18,808

 

Crombie CEO & President Don Clow noted that "We are very pleased with these transactions as it demonstrates solid execution of our multi faceted funding strategy. The proceeds from the 100% sale of non-core properties and partial interest sales of core, low growth properties will be primarily deployed into funding higher net asset value (NAV) growth development projects in Canada's top urban markets. None of the nine partial interest sale properties are included in Crombie's mixed use development pipeline."

Raymond James Limited acted as exclusive advisor to Crombie in connection with the establishment of the co-ownership.

Crombie also has a pending approximately $9 million sale of a drug store anchored property in Napanee, ON at a capitalization rate below 6%. The transaction is expected to close before June 30, 2018.

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 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.

Forward-looking Statements

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, but is not limited to, forward-looking statements regarding:

(i) the expected timing for completion of co-ownership and disposition transactions, which may be affected by the availability of financing, receipt of third party consents and satisfaction of customary closing conditions; and

(ii) the deployment of capital realized from the transaction proceeds to partially fund growth opportunities, which could be impacted by the availability of potential growth opportunities, the level of acquisition activity that Crombie is able to achieve, future financing opportunities, future interest rates and market conditions.

 

SOURCE Crombie REIT

Glenn Hynes, FCPA, FCA, Executive Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100;Claire Mahaney Lyon, Manager, Investor Relations, Crombie REIT, 902-429-3660