Crombie REIT announces closing of public unit offering

    STELLARTON, NS, June 25 /CNW/ - Crombie Real Estate Investment Trust
("Crombie") (TSX: CRR.UN) announced today that it has closed the previously
announced public unit offering, on a bought-deal basis, of 4,725,000 million
units, after full exercise of the underwriters' over-allotment option, to the
public at a price of $7.80 per unit for gross proceeds of $36.9 million.
    In addition to the issuance of the public units, in satisfaction of its
pre-emptive right with respect to the public unit offering, Empire Company
Limited ("Empire") has purchased 3,846,154 Class B LP Units of Crombie Limited
Partnership and the attached Special Voting Units of Crombie at the $7.80 per
unit offering price, for gross proceeds of $30.0 million, on a private
placement basis through its subsidiary ECL Developments Limited. 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
canceled. All securities issued under the private placement are subject to a
four month hold period from the closing date of the private placement. As a
result of the closing of the public offering, including the over-allotment
option, and the private placement, Empire now holds a 47.4% economic and
voting interest in Crombie.
    Crombie will use the net proceeds from the public offering and the
private placement to provide additional financial flexibility by reducing the
outstanding borrowings under the secured floating rate revolving credit
facility and for general trust purposes, which may include potential future
property acquisitions.
    The underwriting syndicate for the public offering was co-led by CIBC
World Markets Inc. and TD Securities Inc. and included Scotia Capital Inc.,
BMO Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Capital
Corporation, Beacon Securities Limited, Macquarie Capital Markets Canada Ltd.
and Raymond James Ltd.

    About Crombie

    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 113 commercial properties in
seven provinces, comprising approximately 11.2 million square feet of rentable

    This news release may contain 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. These statements include, without limitation,
statements regarding the expected use of proceeds of the offering and the
expected closing date of the offering, and 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 discussed in the Risk
Management section of Crombie's fiscal 2008 management's discussion and
analysis, and of Crombie's management's discussion and analysis for the
quarter ended March 31, 2009, and in the "Risks" section of Crombie's annual
information form in respect of the year ended December 31, 2008, 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
    Readers are cautioned that such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from these statements. Crombie can give no assurance that actual
results will be consistent with these forward-looking statements.
    Additional information relating to Crombie can be found on Crombie's web
site at or on the SEDAR web site for Canadian regulatory
filings at

For further information:

For further information: Scott Ball, C.A., Vice President, Chief
Financial Officer and Secretary, Crombie REIT, (902) 755-8100

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