STELLARTON, NS,
March 29, 2012 /PRNewswire/ - Crombie
Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced
today that it has closed the previously announced offering, on a
bought deal basis, of 4,630,000 units to the public at a price of
$14.50 per unit for gross proceeds of
approximately $67.1 million.
In addition to the issuance of the units to the
public, ECL Developments Limited (a wholly owned subsidiary of
Empire Company Limited (TSX: EMP.A)) has purchased, on a private
placement basis, 3,655,200 Class B LP Units of Crombie Limited
Partnership together with the attached Special Voting Units of
Crombie at the $14.50 per unit
offering price, for gross proceeds of approximately $53 million.
Each Class B LP Unit is exchangeable for one
unit of Crombie at the option of the holder. Upon exchange of a
Class B LP Unit, the associated Special Voting Unit is cancelled.
All securities issued under the private placement are subject to a
four month hold period from the closing date of the private
placement. After the closing of the public offering and the private
placement, Empire holds a 44.5% economic and voting interest in
Crombie.
The combined gross proceeds from the Unit and
Class B LP Unit issuance total approximately $120.1 million.
Crombie intends to use the net proceeds from
this offering and the concurrent private placement to finance a
portion of the purchase price for its previously announced purchase
of a portfolio of twenty two (22) retail properties for
$255 million from third party
vendors. The remainder of the purchase price for this acquisition
will be satisfied through the assumption by Crombie of
approximately $95.7 million of
existing property mortgage debt, as well as borrowings under
Crombie's existing line of credit. If the proposed acquisition
does not close for any reason, Crombie intends to use the proceeds
of this offering and the concurrent private placement to reduce
outstanding borrowings under Crombie's revolving line of credit,
for working capital and to fund future acquisitions that are not
yet identified. Pending their use, Crombie expects to temporarily
invest a portion of the net proceeds in short term interest bearing
instruments.
The underwriting syndicate was co-led by CIBC
and Scotia Capital Inc. and also includes TD Securities Inc., BMO
Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Genuity
Corp., Beacon Securities Limited, Macquarie Capital Markets Canada
Ltd., Raymond James Ltd., Brookfield Financial Corp. and Desjardins
Securities Inc.
About Crombie
Crombie is an 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 currently owns a portfolio of 139 investment properties in
eight provinces, comprising approximately 12.6 million square feet
of rentable space. More information about Crombie 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 the expected use of proceeds of the Offering. 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.
SOURCE CROMBIE REIT