$98.2 Million Property Disposition 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 Voil 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.