news CROMBIE REIT ANNOUNCES $255 MILLION ACQUISITION OF GROCERY AND DRUG ANCHORED SHOPPING CENTERS AND EQUITY OFFERING OF $120 MILLION OF UNITS
Crombie Real Estate Investment Trust has agreed to purchase a portfolio of 22 retail properties for $255-million from a third party vendor, subject to regulatory approval. With the exception of two assets located in Manitoba and Saskatchewan, all of the properties are located in Ontario.
"With the completion of this transaction, the REIT will add significantly to its portfolio of high-quality assets across Canada and, importantly, increase our geographic diversification, particularly in Ontario," commented Donald Clow, FCA, Crombie's president and chief executive officer. "The REIT's acquisition of these high-quality assets, together with debt financing expected to be assumed and added at closing, is anticipated to be immediately accretive to Crombie's AFFO per unit."
Mr. Clow continued: "National and regional tenants comprise approximately 90 per cent of the total rental base for the properties. Gap lease and head lease adjustments will result in the equivalent of 100-per-cent occupancy at closing. Furthermore, certain of the assets have attractive expansion opportunities, which should provide Crombie with additional upside if the REIT chooses to pursue development initiatives in the future. We have completed extensive due diligence in connection with the acquisition and are confident that this portfolio represents a strong addition to our existing asset base."