Crombie REIT announces completion of its public offering of $60 million of trust units & private placement of $40 million of Class B LP Units


STELLARTON, NS, May 30, 2014 /CNW/ - Crombie Real Estate Investment Trust ("Crombie" or the "REIT") (TSX: CRR.UN) announced today that it closed the previously announced public offering, on a bought-deal basis, of 4,530,000 trust units (the "Units") at a price of $13.25 per Unit for gross proceeds of $60,022,500.  The offering was made under Crombie's prospectus supplement dated May 23, 2014 supplementing the (final) base shelf prospectus dated May 13, 2014.

In addition to the issuance of Units to the public, ECL Developments Limited ("ECL"), a wholly-owned subsidiary of Empire Company Limited (TSX: EMP.A), has purchased, on a private placement basis, 3,018,868 Class B LP Units of Crombie Limited Partnership ("Class B LP Unit") together with the attached Special Voting Units of Crombie at a price of $13.25 per Class B LP Unit, for gross proceeds of approximately $40 million.  Each Class B LP Unit is exchangeable for one Unit of Crombie at the option of the holder. Upon exchange of a Class B LP Unit, the associated Special Voting Unit is cancelled. After the closing of the public offering and the private placement, Empire Company Limited holds a 41.5% economic and voting interest in Crombie.

The REIT intends to use the net proceeds from both the offering and the concurrent purchase by ECL to reduce outstanding borrowings under the REIT's revolving credit facility and for general trust purposes, including possible future acquisitions.

The underwriting syndicate was co-led by CIBC, BMO Capital Markets, Scotiabank and TD Securities Inc., and also included National Bank Financial Inc., RBC Capital Markets, Canaccord Genuity Corp., Desjardins Securities Inc. and Raymond James Ltd.

About Crombie

Crombie Real Estate Investment Trust is an open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie currently owns a portfolio of 250 commercial properties across Canada, comprising approximately 17.6 million square feet with a strategy to primarily own and operate a portfolio of high quality grocery and drug store anchored shopping centres and freestanding stores in Canada's top 36 markets.

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 "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements, and include statements regarding the expected use of proceeds of the offering and the ECL private placement. 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, including those risks discussed in the 2013 annual Management Discussion and Analysis under "Risk Management", 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 reader 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.

More information about Crombie can be found on Crombie's web site at or on the SEDAR web site for Canadian regulatory filings at


For further information:

please contact:

Mr. Glenn Hynes, FCA
Executive Vice President, Chief Financial Officer and Secretary
Crombie REIT
(902) 755-8100


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