STELLARTON, NS, June 12 /CNW/ - Crombie Real Estate Investment Trust
("Crombie") (TSX: CRR.UN) is pleased to announce the acquisition of the River
City Centre in Saskatoon, Saskatchewan.
River City Centre consists of three multi-tenant buildings and three
freestanding pads totalling 160,456 square feet, on a 13.4 acre site. The
property was purchased for $27.2 million, excluding closing and transaction
costs, representing a capitalization rate of 7.1%.
The property is 100% leased to 13 tenants which include Sears Home, Part
Source (Canadian Tire), Staples, Sport Mart (Forzani), Dollarama and Giant
Tiger. Approximately 85% of the area and 83% of the rental revenue is derived
from national retailers with strong covenants.
The purchase price will be satisfied by the assumption of a $16.4 million
fixed rate mortgage, carrying and interest rate of 5.35% with a three year
remaining term, with the balance of funds provided by the revolving credit
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 114 commercial properties in
seven provinces, comprising approximately 11.3 million square feet of gross
leaseable area. More information about Crombie can be found at
This news release contains 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 "may", "will", "estimate", "anticipate", "believe", "expect",
"intention" 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. Forward looking
statements necessarily involve known and unknown risks and uncertainties. A
number of factors 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 prospective purchaser 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.
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.
For further information:
For further information: Scott Ball, C.A., Vice President, Chief
Financial Officer and Secretary, Crombie REIT, (902) 755-8100