Crombie REIT announces the closing of the $100 million refinancing of $280 million bridge loan

    STELLARTON, NS, Sept. 30 /CNW/ - Crombie Real Estate Investment Trust
("Crombie") (TSX: CRR.UN) is pleased to report that it closed today the
previously announced mortgage financing with HBOS Canada ("HBOS") to refinance
$100 million of the bridge loan used to partially finance the portfolio
acquisition of 61 properties completed on April 22, 2008. TD Securities acted
as agent on the transaction. The fixed rate mortgages have a weighted average
7.7 year term, with a 25 year amortization, and a weighted average interest
rate of 5.91%. Factoring in the cost of delayed interest rate swap hedges
placed upon assumption of the bridge loan, the overall weighted average
interest rate is 6.09%. This overall weighted average interest rate is 26
basis points lower than the 6.35% rate used to model the pro forma accretion
of the portfolio acquisition.
    Commenting on the closing of the financing, J. Stuart Blair, President
and Chief Executive Officer stated: "While the credit markets continue to
prove to be challenging, the progress made in replacing a major portion of our
bridge loan with suitable long term financing is very encouraging. We are also
excited to be able to attract international financing as one of the early
deals completed by HBOS in Canada. We continue to have discussions with a
number of potential sources for completing the refinancing of the $180 million
bridge loan remaining."

    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 11.1 million square feet of rentable

    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. 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 discussed in the 2008
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
    In particular, certain statements in this document discuss Crombie's
anticipated outlook of future events. These statements include, but are not
limited to refinancing of the remaining bridge loan, which could be impacted
by credit markets conditions including liquidity, credit spreads and other
financing risks. 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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