NEW GLASGOW, NS, April 11, 2018 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) has entered into two joint venture partnerships with an affiliate of Place Dorée and Groupe Canvar ("Prince Developments" or "PrinceDev").
One partnership results in Crombie becoming a 50% partner in the new Le Duke mixed use development at 297 Rue Duke in Montreal adjacent to the new Bonaventure Greenway in Old Montreal, comprising an estimated $127 million investment, 25 storey mixed use tower with 390 residential rental units above a 25,000 sq. ft. IGA branded Sobeys grocery store, 1,000 sq. ft. of retail space with frontage on William Street and 300 underground parking stalls. The new building will retain the existing heritage building currently on site, integrating the two story façade and structure into the new development. Le Duke represents a new development pipeline property for Crombie; enhancing its existing development pipeline. Development of Le Duke commenced in late 2017 with completion estimated in 2020.
The second partnership results in PrinceDev becoming a 50% partner in Crombie's estimated $275 million Oakville, Bronte Village mixed use development which is being developed as a residential rental development, replacing the existing Bronte Village Mall with 480 units of refined rental living. Bronte Village will feature two residential rental towers (14 and 10 storeys), 800 underground parking spaces and 17,500 sq. ft. of new complimentary retail space. The existing 30,000 sq. ft. Sobeys is expected to remain operational during the redevelopment. Bronte Village is expected to commence construction in 2018 with completion estimated in 2020.
These projects and partnerships support Crombie's strategy to improve portfolio quality, increase diversification and drive net asset value, while building high quality, sustainable cash flow and real estate that enhances communities for the long term. Crombie invests in welcoming, convenient properties where people want to live, work, shop and play.
Don Clow, Crombie's President & CEO added: "We are delighted to be working with PrinceDev, an excellent Canadian urban developer, to develop these two exciting projects. It results in Crombie adding an exciting Montreal mixed use development site to our current active projects in Vancouver, Oakville, Victoria (Langford), and St John's."
Both projects are in early development stages with certain outstanding approvals and financing still to be completed.
About Prince Developments ("PrinceDev")
Prince Developments was formed in 2009 as a joint venture between Place Dorée and Groupe Canvar and has since completed numerous successful projects in Quebec and Ontario. Headquartered in Montreal, PrinceDev specializes in residential, hotel, and mixed use developments.
About Crombie REIT
Crombie REIT is an open-ended real estate investment trust. Established in 2006, Crombie is one of the country's leading national retail property landlords with a strategy focused on owning, operating and developing a portfolio of high quality grocery and drug store anchored shopping centres, freestanding stores, and mixed use developments primarily in Canada's top urban and suburban markets. More information about Crombie can be found at www.crombie.ca.
This news release contains forward-looking information reflecting management's expectations regarding the development specifications, costs and timing for Bronte Village and Le Duke and other statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical fact, which statements may be identified by the use of forward-looking terminology such as "may", "will", "estimate", "anticipate", "believe", "expect", "intend" or similar expressions suggesting future outcomes or events. The forward-looking statements in this news release are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from current expectations, including changes to market demand for commercial and residential rental space, availability of debt financing on acceptable terms or at all, receipt of planning and construction approvals and permits, actual development costs and general economic conditions, and other factors described under the heading "Risks" in Crombie REIT's annual information form for the year ended December 31, 2017, a copy of which may be found at www.sedar.com. 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 REIT will prove to be correct. Crombie REIT does not undertake to update any forward-looking statements that may be made from time to time by them or on their behalf other than as required by applicable securities laws.
SOURCE Crombie REIT
For further information: Media Contact: Glenn Hynes, FCPA, FCA, Executive Vice President, Chief Financial Officer and Secretary, Phone: 902-755-8100, [email protected]