|Crombie REIT Announces $255 Million Acquisition
March 15, 2012
Crombie Real Estate Investment Trust (REIT) recently announced an agreement to purchase a portfolio of 22 retail properties for $255 million. The acquisition is through a third party vendor, subject to regulatory approval. With the exception of two assets located in Manitoba and Saskatchewan, all the properties are in Ontario.
Donald Clow, FCA, Crombie’s President and Chief Executive Officer says, “With the completion of this transaction, the REIT will add significantly to its portfolio of high quality assets across Canada and, importantly, increase our geographic diversification, particularly in Ontario. The REIT’s acquisition of these high quality assets together with debt financing expected to be assumed and added at closing, is anticipated to be immediately accretive to Crombie’s AFFO per unit.”
“National and regional tenants comprise approximately 90 per cent of the total rental base for the properties. Gap lease and head lease adjustments will result in the equivalent of 100 per cent occupancy at closing. Furthermore, certain of the assets have attractive expansion opportunities, which should provide Crombie with additional upside if the REIT chooses to pursue development initiatives in the future,” notes Mr. Clow. “We have completed extensive due diligence in connection with the acquisition and are confident that this portfolio represents a strong addition to our existing asset base.”
The acquisition is expected to close April 10, 2012, subject to receipt of required consents from the applicable lenders.