Crombie Arranges $200-Million In Financings


Crombie Real Estate Investment Trust has entered into an agreement to sell, subject to regulatory approval and on a bought deal basis, $117-million of trust units at a price of $17.45 per unit to a syndicate of underwriters led by Scotiabank and BMO Capital Markets. Closing is expected to occur on or about Jan. 31, 2022, subject to receipt of the Toronto Stock Exchange and other necessary regulatory approvals. In addition, ECL Developments Ltd., a wholly owned subsidiary of Empire Company Ltd., will purchase approximately $83-million of Class B limited partnership units of Crombie Limited Partnership and the associated special voting units of Crombie on a private placement basis on the same terms in satisfaction of its pre-emptive right with respect to the equity offering.


The REIT intends to use the net proceeds from the equity financing to repay outstanding indebtedness, to finance the REIT's development pipeline and value-add capital programs with Empire, and for general trust purposes.


Crombie's development program continues to be a driver of unitholder value creation while increasing the REIT's presence in Canada's top urban markets and enhancing the REIT's overall portfolio quality. Proceeds from the equity financing will strengthen the REIT's balance sheet and, along with Crombie's other sources of capital, provide financial flexibility to continue to support the REIT's growth.


Since 2020, Crombie has completed six significant development projects, representing a total investment of approximately $473-million, adding 405,000 square feet of commercial gross leasable area (GLA), 309,000 square feet of retail-related industrial GLA and 495,000 square feet of residential GLA. Completed developments include the Davie Street project in Vancouver, B.C., with 330 residential units which are 100 per cent leased, and the fully leased customer fulfilment centre retail-related industrial property in Montreal, Que., of which the REIT recently sold a 50-per-cent non-managing interest.


The units issued under the equity offering will be offered pursuant to the REIT's base shelf prospectus dated July 23, 2020. The terms of the equity offering will be described in a prospectus supplement to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada on or about Jan. 24, 2022.


About Crombie Real Estate Investment Trust


Crombie invests in quality real estate that enhances local communities and is adaptable to long-term growth. As one of the country's leading national retail property landlords, Crombie's portfolio includes grocery-anchored retail, shopping centres, retail-related industrial and mixed-use developments in Canada's top urban and suburban markets. Crombie is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario.