/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
STELLARTON, NS, June 26, 2012 /CNW/ – Crombie Real Estate Investment
Trust ("Crombie") (TSX: CRR.UN) announced today that it has completed
the acquisition of five retail properties (the "Properties") from
affiliated entities of Shoppers Drug Mart Inc. for a purchase price of
approximately $42.8 million, subject to closing adjustments ("Purchase
Price"). The Properties include total gross leasable area of
approximately 107,000 square feet, with three Properties located in
Quebec and one each in Ontario and Alberta.
Crombie will complete mortgage financing totaling approximately $29.1
million on the properties, with mortgages on four locations funding
immediately following closing of the acquisition. An additional
mortgage on the fifth property is expected to fund before the end of
June. The mortgages have interest rates ranging from 4.15% to 4.33%
with 10 to 17 year terms and 25 year amortizations. The balance of the
Purchase Price, closing adjustments and transaction costs was drawn
from Crombie's existing revolving credit facitity (the "Revolver").
Crombie also completed the annual renewal of its Revolver, extending its
term to maturity one year to June 30, 2015. As part of the renewal,
Crombie exercised and gained lender approval for the $50 million
accordion feature on the Revolver, increasing the maximum authorized
credit under the Revolver to $200 million, subject to available
borrowing base, and including both funds drawn on the facility and
issued Letters of Credit.
"With the completion of this transaction, Crombie has added to its
portfolio of high quality assets across Canada and, importantly,
increased our geographic diversification," commented Donald E. Clow
FCA, Crombie's President and Chief Executive Officer. "The acquisition
is anticipated to be accretive to Crombie's Adjusted Funds From
Operations ("AFFO") per unit. We are also pleased with the renewal of
our Revolver and the additional $50 million afforded under the
accordion feature. We are committed to maintaining a strong balance
sheet with ample liquidity. Our Revolver renewal combined with the
recently announced $60 million, 5.00%, seven-year Convertible Debenture
issuance which is expected to close on July 3, 2012 provides additional
liquidity and balance sheet strength to support our future growth
stategy."
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. 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 REIT currently owns a portfolio of 166 commercial properties in
nine provinces, comprising approximately 13.6 million square feet of
gross leasable area. More information about Crombie REIT can be found
at www.crombiereit.com.
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 reflect current beliefs and are based on information
currently available to management of Crombie, and include, without
limitation, statements regarding (a) the completion of additional
mortgage financing with respect to certain of the Properties and (b)
the expectation that the acquisition of the Properties will be
accretive to Crombie's AFFO. Forward looking statements necessarily
involve known and unknown risks and uncertainties.
A number of factors, including those discussed in the 2011 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.
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.