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NEW GLASGOW, NS, July 13, 2017 /CNW/ - Crombie Real Estate
Investment Trust ("Crombie" or the "REIT") (TSX: CRR.UN) announced that it has closed on the acquisition of a property located at
1215-1255 McCowan Road in Toronto, Ontario from a third party vendor for a purchase price of
$42.0 million, excluding closing adjustments and transaction costs.
The site includes 4.5 acres of land located next to the McCowan TTC Station. The property is currently income producing and
consists of a 100% occupied 61,000 square foot FreshCo anchored strip retail plaza. FreshCo is the discount banner of Sobeys Inc.
operating in Ontario. "Our initial assessment is that there is opportunity to add significant
residential density to this site over time as the property is currently not utilized at its highest and best use," stated
Donald E. Clow, FCPA, CPA, President and CEO.
The acquisition of this property adds to Crombie's existing pipeline of development sites which as of March 31 st, 2017 consisted of 19 properties representing up to 6,500 residential units and total
estimated cost to develop of $2 to $3 billion. These 20 sites are positioned as follows: Toronto
GTA (3), Vancouver (9), Calgary & Edmonton (4),
Halifax (3) and St John's (1).
Mr. Clow added, "These tremendous opportunities exemplify Crombie's strategic advantage of having a strong relationship with a
leading national grocery retailer. Through close collaboration with our largest tenant Sobeys Inc., we are confident we can
create significant incremental Unitholder value over the medium to long term."
About Crombie
Crombie is an open-ended real estate investment trust established under, and governed by, the laws of the Province of
Ontario. Crombie currently owns a portfolio of 283 income producing properties across
Canada, comprising approximately 19.2 million square feet with a strategy to own, operate and
develop a portfolio of high quality grocery and drug store anchored shopping centres and freestanding stores and mixed use
developments primarily in Canada's top urban and suburban markets.
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 "continue",
"may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these
forward-looking statements. These statements, including statements regarding the development potential of the acquired property
and Crombie's other development sites and the total estimated cost to develop these sites, 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 the risk that changing market conditions may affect the commercial viability of particular
development opportunities, the possibility that actual costs to develop are higher than currently estimated, limits on
Crombie's ability to develop its pipeline of development properties in a timely manner due to operational constraints or
constraints associated with Crombie's status as a real estate investment trust, and those risks discussed in the 2016 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.
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.
SOURCE Crombie REIT
View original content: http://www.newswire.ca/en/releases/archive/July2017/13/c1141.html