STELLARTON, NS, July 26 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) is pleased to announce the acquisition of the International Gateway Centre in Fort Erie, Ontario.
International Gateway Centre is a single level grocery anchored strip centre comprised of approximately 92,500 square feet of gross leaseable area. The property was purchased for a total of $19.2 million, representing a capitalization rate of 6.9%.
The property is approximately six years old and is anchored by a Sobeys food store. It is comprised of two multi-tenant buildings as well as a free standing TD Canada Trust building and Shoppers Drug Mart building. Additional tenants include Dollarama, a Credit Union, Easyhome and Bulk Barn.
Additional site density will allow for future development of an additional 10,000 square foot free standing building, 25,000 square feet of multi-tenant retail strip and a 10,000 square foot expansion to the Sobeys food store. This future expansion was not included in the financial analysis for the property.
The purchase price will be satisfied by the assumption of an $11.4 million fixed rate mortgage, carrying and interest rate of 5.36% with an eight 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 50 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