Crombie REIT announces $200 million equity financing

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NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

NEW GLASGOW, Nova Scotia, Jan. 20, 2022 (GLOBE NEWSWIRE) — Crombie Real Estate Investment Trust (“Crombie” or the “REIT”) (TSX: CRR.UN) announced today that it has entered into an agreement to sell, subject to regulatory approval and on a bought deal basis, $117 million of Trust Units (the “Units”) at a price of $17.45 per Unit to a syndicate of underwriters led by Scotiabank and BMO Capital Markets (the “Share Offering”). Closing is expected to occur on or about January 31, 2022, subject to receipt of the Toronto Stock Exchange and other necessary regulatory approvals. In addition, ECL Developments Limited, a wholly-owned subsidiary of Empire Company Limited (“Empire”), will purchase approximately $83 million of Crombie Limited Partnership’s Class B limited partnership units and the Special Voting Units partners of Crombie in a private placement on the same terms in satisfaction of its right of first refusal in respect of the Equity Offering (together with the Equity Offering, the “Equity Financing”).

The REIT intends to use the net proceeds from the equity financing to repay outstanding debt, to fund the REIT’s development pipeline and value-added capital programs with Empire, and for fiduciary purposes. general.

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Crombie’s development program continues to be an engine of value creation for unitholders, while increasing the REIT’s presence in key Canadian urban markets and improving the overall quality of the REIT’s portfolio. Proceeds from the equity financing will strengthen the REIT’s balance sheet and, along with Crombie’s other sources of capital, provide the financial flexibility needed to continue to support the REIT’s growth.

Since 2020, Crombie has completed six major 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 commercial-related industrial GLA of retail and 495,000 square feet of residential GLA. . Completed developments include the Davie Street project in Vancouver, British Columbia, with 330 residential units that are 100% leased, and the fully leased Customer Processing Center industrial building in Montreal, Quebec, whose REIT recently sold a 50% management interest.

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The Units issued under the Share Offering will be offered under the REIT’s base shelf prospectus dated July 23, 2020. The terms of the Share Offering will be described in a prospectus supplement that will be filed with the securities commissions. securities and other similar regulatory authorities in each of the provinces of Canada on or about January 24, 2022.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States as of lack of registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

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About Crombie

Crombie Real Estate Investment Trust invests in quality real estate that enhances local communities and accommodates long-term growth. As one of the nation’s leading commercial property owners, Crombie’s portfolio includes grocery retail, shopping malls, retail-related industrial and mixed-use developments in key urban markets and suburbs of Canada. Crombie is an unincorporated open-ended real estate investment trust incorporated and governed by the laws of the Province of Ontario. Learn more at www.crombiereit.com.

This press release contains forward-looking statements that reflect Crombie’s management’s current expectations regarding Crombie’s future results, performance, achievements, prospects and opportunities. Where possible, words such as “continue”, “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “intend” and expressions similar statements have been used to identify such forward-looking statements, and include statements regarding the intended use of proceeds from the equity financing, the expected impact of the equity financing on Crombie’s balance sheet strength and financial flexibility and the expected timing of the closing of the equity financing. These statements reflect current beliefs and are based on information currently available to Crombie management. Forward-looking statements necessarily involve known and unknown risks and uncertainties.

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A number of factors, including the risks described under “Risks” in Crombie’s Annual Information Form for the year ended December 31, 2020, could cause the results, performance, achievements, prospects or the actual opportunities differ materially from the results mentioned or implied in the forward-looking statements. These factors should be carefully considered and the reader should not place undue reliance on any forward-looking statements. There can be no assurance that the expectations of Crombie management will prove to be correct.

Further information about Crombie is available on Crombie’s website at www.crombiereit.com or on the SEDAR website for Canadian regulatory filings at www.sedar.com.

For more information, please contact:

Clinton Keay, CPA, CA
Financial Director and Secretary
902-755-8100

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