STELLARTON, NS, Feb. 26 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) is pleased to report that it completed a $33.8 million mortgage financing with a Schedule 1 Canadian chartered bank on five properties acquired in a portfolio acquisition in April of 2008.
The $33.8 million of mortgage represents approximately 60.8% of the original purchase value of the five properties financed.
The mortgages have an eight year term and a weighted average amortization period of 21.7 years with a fixed interest rate of 5.7%.
Commenting on the closing of the financing, Donald Clow, F.C.A., President and Chief Executive Officer stated: "This financing provides Crombie with additional liquidity to enable us to execute on our long term growth strategy."
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 115 commercial properties in seven provinces, comprising approximately 11.4 million square feet of rentable space.
This news release may contain 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 "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" 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, including those discussed in the 2009 annual Management Discussion and Analysis under "Risk Management", 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 reader 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