STELLARTON, NS, June 12 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) is pleased to announce the acquisition of the River City Centre in Saskatoon, Saskatchewan.
River City Centre consists of three multi-tenant buildings and three freestanding pads totalling 160,456 square feet, on a 13.4 acre site. The property was purchased for $27.2 million, excluding closing and transaction costs, representing a capitalization rate of 7.1%.
The property is 100% leased to 13 tenants which include Sears Home, Part Source (Canadian Tire), Staples, Sport Mart (Forzani), Dollarama and Giant Tiger. Approximately 85% of the area and 83% of the rental revenue is derived from national retailers with strong covenants.
The purchase price will be satisfied by the assumption of a $16.4 million fixed rate mortgage, carrying and interest rate of 5.35% with a three year remaining 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 114 commercial properties in seven provinces, comprising approximately 11.3 million square feet of gross leaseable area. 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