NEW GLASGOW, NS, Oct. 19, 2021 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it has entered into an agreement to sell a 50% non-managing interest in its Pointe-Claire, QC Customer Fulfilment Centre, to Nexus REIT ("Nexus") for a total purchase price of $98.2 million, including the purchaser's assumption of $61.5 million mortgage financing related to the property.
Due diligence conditions have been waived for Crombie to enter into a joint operation with a subsidiary of Nexus and closing is scheduled to occur in December 2021. Crombie will continue to manage the property via a property management agreement with Empire Company Limited ("Empire"), who will operate their Quebec Voilà par IGA e-commerce platform out of this facility.
"We are pleased with this transaction as it speaks to the quality of our retail-related industrial portfolio and our attractiveness as a partner in completing joint arrangements where Crombie retains both an ownership interest and ongoing property management," said Don Clow, President and CEO. "Crombie continues to access multiple sources of capital, and remains committed to a strong and improving balance sheet. The net proceeds from the partial interest sale will primarily be used to support our continued investment in Empire-related initiatives and our development program as we continue to focus on creating an optimal asset mix of grocery-anchored retail combined with mixed-use residential, and retail-related industrial properties in Canada's top urban markets."
Nexus is a growth-oriented industrial-focused commercial REIT. Nexus has a quality portfolio of industrial, office, and retail properties in Canada with a focus on acquiring and owning industrial properties.
BMO Capital Markets acted as exclusive advisor to Crombie in connection with the establishment of the joint operation.
About Crombie REIT
Crombie Real Estate Investment Trust invests in quality real estate that enhances local communities and is adaptable to long-term growth. As one of the country's leading national retail property landlords, Crombie's portfolio includes grocery-anchored retail, shopping centres, industrial, and mixed-use developments in Canada's top urban and suburban markets. Crombie is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Learn more 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 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 Annual Information Form for the year ended December 31, 2020 under "Risks", 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