STELLARTON, NS, March 20 /CNW/ - Crombie Real Estate Investment Trust
("Crombie") (TSX: CRR.UN) announced today that it has closed its previously
announced public offering of 5,727,750 subscription receipts, after full
exercise of the underwriters' over-allotment option in respect of the
subscription receipts on March 14, 2008, at a price of $11.00 per subscription
receipt, and $30 million aggregate principal amount of 7.0% extendible
convertible unsecured subordinated debentures (the "Offering"), for aggregate
gross proceeds from the Offering of $93,005,250. The subscription receipts and
convertible debentures have been approved for listing on the TSX and will
trade under the symbols "CRR.R" and "CRR.DB", respectively.
The underwriting syndicate for the Offering was co-led by CIBC World
Markets Inc. and TD Securities Inc., and included BMO Nesbitt Burns Inc.,
Scotia Capital Inc., National Bank Financial Inc., Canaccord Capital
Corporation and Raymond James Ltd.
The net proceeds from the Offering will be used by Crombie to satisfy a
portion of the purchase price of its previously announced acquisition of a
portfolio of 61 retail properties representing approximately 3.3 million
square feet of gross leaseable area from subsidiaries of Empire Company
Limited (the "Acquisition"). On closing of the Acquisition, each subscription
receipt will automatically convert into one unit of Crombie and the maturity
date for the convertible debentures will be extended to March 20, 2013.
Closing of the Acquisition is scheduled to occur on or about April 21, 2008.
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 52 commercial properties in
six provinces, comprising approximately 8.0 million square feet of rentable
space. More information about Crombie can be found at www.crombiereit.com.
This press release contains forward-looking statements related to the
Acquisition. While agreements of purchase and sale with respect to the
Acquisition have been entered into by Crombie and subsidiaries of Empire
Company Limited, the Acquisition remains subject to significant conditions
including the approval of a majority of minority unitholders of Crombie. There
can be no assurance that the Acquisition will be completed by Crombie. The
risks associated with these forward looking statements should be considered
carefully and readers should not place undue reliance on the forward looking
statements. Forward-looking statements are based on a number of assumptions
which may prove to be incorrect. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release and Crombie
undertakes no obligation to update such statements except as required by law.
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