NEW GLASGOW, NS, Oct. 17, 2024 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced that on October 15, 2024 it has completed the previously announced acquisition of the remaining 50% of Zephyr, in Vancouver, British Columbia, from its partner, Westbank Corp., for an aggregate purchase price of $133 million. Through this acquisition, Crombie will now own 100% of the residential component, in addition to its existing full ownership of the ground floor grocery-anchored retail.
As a result of the acquisition, Crombie will fully consolidate Zephyr and assume the additional 50% of existing mortgages, equivalent to approximately $89 million, with remaining term to maturity of over three years with the balance of the purchase price funded by drawing on a new unsecured bank credit facility. Concurrently with closing, the interest rate on the new unsecured bank credit facility was locked in and together, the total debt has an attractive blended interest rate of 3.5%.
Built in 2021, Zephyr is a mixed-use residential asset anchored by Safeway and includes other complementary necessity-based retailers. Well-located in the West End of downtown Vancouver, offering panoramic views of English Bay and Stanley Park, Zephyr is comprised of two residential towers, totalling 330 rental suites, and was 93.9% occupied at June 30, 2024. This community of homes is focused on living-locally and enjoys a high walkability score in a city ranked among the most walkable cities in the world.
Scotiabank acted as the exclusive advisor to Crombie on this acquisition.
About Crombie REIT
Crombie invests in real estate with a vision of enriching communities together by building spaces and value today that leave a positive impact on tomorrow. As one of the country's leading owners, operators, and developers of quality real estate assets, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-use residential properties. As at June 30, 2024, our portfolio contains 304 properties comprising approximately 19.3 million square feet, inclusive of joint ventures at Crombie's share, and a significant pipeline of future development projects. Learn more at www.crombie.ca.
Cautionary Statements
This press 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.
Specifically, this press release includes forward-looking statements regarding the impact of the acquisition on the quality of Crombie's residential platform. Forward-looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including the timing and need for regulatory approval, and those discussed in the 2023 annual Management's Discussion and Analysis under "Risk Management" and the Annual Information Form for the year ended December 31, 2023 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, and Crombie can give no assurance that actual results will be consistent with these forward-looking statements.
SOURCE Crombie REIT
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