Crombie REIT announces closing of public unit offering and monthly distribution

STELLARTON, NS, Oct. 20, 2011 /CNW/ – Crombie Real Estate Investment
Trust ("Crombie") (TSX: CRR.UN) announced today that it has closed the
previously announced public unit offering, on a bought deal basis of
3,510,000 units to the public at a price of $12.85 per unit for gross
proceeds of approximately $45.1 million.

In addition to the issue of the public units, in satisfaction of its
pre-emptive right with respect to the public unit offering, ECL
Developments Limited (a wholly owned subsidiary of Empire Company
Limited (TSX: EMP.A)) has purchased 2,334,630 Class B LP Units of
Crombie Limited Partnership and the attached Special Voting Units of
Crombie at the $12.85 per unit offering price, for gross proceeds of
approximately $30 million, on a private placement basis.

Each Class B LP Unit is exchangeable for one unit of Crombie at the
option of the holder. Upon exchange of a Class B LP Unit, the
associated Special Voting Unit is cancelled. All securities issued
under the private placement are subject to a four month hold period
from the closing date of the private placement. As a result of the
closing of the public offering and the private placement, Empire now
holds a 44.6% economic and voting interest in Crombie.

The combined gross proceeds from the Unit and Exchangeable LP Unit
issuance total approximately $75.1 million.

Crombie intends to use the net proceeds from this offering to repay
floating rate debt under the terms of its $150 million floating rate
revolving credit facility as well as for general REIT purposes, which
may include future acquisitions completed in the ordinary course.
Pending their use, Crombie expects to temporarily invest a portion of
the net proceeds in short term interest bearing instruments.

The underwriting syndicate was co-led by CIBC and TD Securities Inc. and
also includes Scotia Capital Inc., BMO Nesbitt Burns Inc., National
Bank Financial Inc., Canaccord Genuity Corp., Macquarie Capital Markets
Canada Ltd., Beacon Securities Limited, Raymond James Ltd., Desjardins
Securities Inc. and Jennings Capital Inc.

In addition, Crombie today announced a distribution of $0.07417 per unit
for the period from October 1, 2011 to and including October 31, 2011.
The distribution will be payable on November 15, 2011 to unitholders of
record as at October 31, 2011.

About Crombie

Crombie Real Estate Investment Trust is an unincorporated, 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 REIT currently owns a portfolio of 136 commercial properties in
eight provinces, comprising approximately 12.3 million square feet of
gross leasable area. More information about Crombie REIT can be found

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 include, without limitation, statements regarding the
expected use of proceeds of the offering, and 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 Risk Management section of Crombie's fiscal 2010
management's discussion and analysis, and of Crombie's management's
discussion and analysis for the quarter ended June 30, 2011, and in the
"Risks" section of Crombie's annual information form in respect of the
year ended December 31, 2010, 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.

Readers are cautioned that such forward-looking statements are subject
to certain risks and uncertainties that could cause actual results to
differ materially from these statements. Crombie can give no assurance
that actual results will be consistent with these forward-looking

Additional information relating to Crombie can be found on Crombie's web
site at or on the SEDAR web site for Canadian regulatory filings at