STELLARTON, NS, March 7 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) is pleased to announce the acquisition of Perth Mews Shopping Mall, located in Perth, Ontario.
Perth Mews Shopping Mall is a single level grocery anchored strip centre comprised of approximately 102,500 square feet of gross leaseable area. The property was purchased for a total of $17.9 million, representing a capitalization rate of 7.3%.
A new free standing 10,000 square foot Mark's Work Warehouse was recently completed. Additional tenants include Your Independent Grocer, LCBO, Bargain Shop, CIBC and Shoppers Drug Mart.
The purchase price will initially be satisfied by funds from the revolving credit facility. Crombie has entered into a commitment letter to place a $12.6 million fixed rate mortgage on the property, carrying an interest rate of 5.43% with a fifteen year term. The financing is anticipated to close prior to the end of April 2007.
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 in Ontario and Western Canada. Crombie currently owns a portfolio of 49 commercial properties in six provinces, comprising approximately 7.6 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