STELLARTON, NS, Aug. 24 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) is pleased to announce the acquisition of a freestanding IGA store in Brossard, Quebec.
The Brossard IGA is a grocery store of approximately 38,800 square feet of gross leaseable area. The property was purchased for a total of $7.3 million, representing a capitalization rate of 6.7%.
The property is approximately three years old. Additional site density will allow for future development of an additional 10,000 square foot expansion to the IGA food store and additional tenants. This future expansion was not included in the financial analysis for the property.
The purchase price will be satisfied by the assumption of a $3.4 million fixed rate mortgage, carrying an interest rate of 6.44% with a 17 year term, with the balance of funds provided by the revolving credit facility.
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 51 commercial properties in six provinces, comprising approximately 7.8 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.
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 "may", "will", "estimate", "anticipate", "believe", "expect", "intention" 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 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 prospective purchaser 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.
Contact: Scott Ball, C.A., Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100