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STELLARTON, NS,
June 26, 2012 /CNW/ - Crombie Real
Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today
that it has completed the acquisition of five retail properties
(the "Properties") from affiliated entities of Shoppers Drug Mart
Inc. for a purchase price of approximately $42.8 million, subject to closing adjustments
("Purchase Price"). The Properties include total gross leasable
area of approximately 107,000 square feet, with three Properties
located in Quebec and one each in
Ontario and Alberta.
Crombie will complete mortgage financing
totaling approximately $29.1 million
on the properties, with mortgages on four locations funding
immediately following closing of the acquisition. An additional
mortgage on the fifth property is expected to fund before the end
of June. The mortgages have interest rates ranging from 4.15% to
4.33% with 10 to 17 year terms and 25 year amortizations. The
balance of the Purchase Price, closing adjustments and transaction
costs was drawn from Crombie's existing revolving credit facitity
(the "Revolver").
Crombie also completed the annual renewal of its
Revolver, extending its term to maturity one year to June 30, 2015. As part of the renewal,
Crombie exercised and gained lender approval for the $50 million accordion feature on the Revolver,
increasing the maximum authorized credit under the Revolver to
$200 million, subject to available
borrowing base, and including both funds drawn on the facility and
issued Letters of Credit.
"With the completion of this transaction,
Crombie has added to its portfolio of high quality assets across
Canada and, importantly, increased
our geographic diversification," commented Donald E. Clow FCA,
Crombie's President and Chief Executive Officer. "The acquisition
is anticipated to be accretive to Crombie's Adjusted Funds From
Operations ("AFFO") per unit. We are also pleased with the
renewal of our Revolver and the additional $50 million afforded under the accordion feature.
We are committed to maintaining a strong balance sheet with ample
liquidity. Our Revolver renewal combined with the recently
announced $60 million, 5.00%,
seven-year Convertible Debenture issuance which is expected to
close on July 3, 2012 provides
additional liquidity and balance sheet strength to support our
future growth stategy."
About Crombie
Crombie Real Estate Investment Trust is an
unincorporated, 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 REIT
currently owns a portfolio of 166 commercial properties in nine
provinces, comprising approximately 13.6 million square feet of
gross leasable area. More information about Crombie REIT 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 (a) the completion of additional mortgage financing with
respect to certain of the Properties and (b) the expectation that
the acquisition of the Properties will be accretive to Crombie's
AFFO. 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