STELLARTON, NS, March 20 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it has closed its previously announced public offering of 5,727,750 subscription receipts, after full exercise of the underwriters' over-allotment option in respect of the subscription receipts on March 14, 2008, at a price of $11.00 per subscription receipt, and $30 million aggregate principal amount of 7.0% extendible convertible unsecured subordinated debentures (the "Offering"), for aggregate gross proceeds from the Offering of $93,005,250. The subscription receipts and convertible debentures have been approved for listing on the TSX and will trade under the symbols "CRR.R" and "CRR.DB", respectively.
The underwriting syndicate for the Offering was co-led by CIBC World Markets Inc. and TD Securities Inc., and included BMO Nesbitt Burns Inc., Scotia Capital Inc., National Bank Financial Inc., Canaccord Capital Corporation and Raymond James Ltd.
The net proceeds from the Offering will be used by Crombie to satisfy a portion of the purchase price of its previously announced acquisition of a portfolio of 61 retail properties representing approximately 3.3 million square feet of gross leaseable area from subsidiaries of Empire Company Limited (the "Acquisition"). On closing of the Acquisition, each subscription receipt will automatically convert into one unit of Crombie and the maturity date for the convertible debentures will be extended to March 20, 2013. Closing of the Acquisition is scheduled to occur on or about April 21, 2008.
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 52 commercial properties in six provinces, comprising approximately 8.0 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.
This press release contains forward-looking statements related to the Acquisition. While agreements of purchase and sale with respect to the Acquisition have been entered into by Crombie and subsidiaries of Empire Company Limited, the Acquisition remains subject to significant conditions including the approval of a majority of minority unitholders of Crombie. There can be no assurance that the Acquisition will be completed by Crombie. The risks associated with these forward looking statements should be considered carefully and readers should not place undue reliance on the forward looking statements. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and Crombie undertakes no obligation to update such statements except as required by law.
Contact: Scott Ball, C.A., Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100