"NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES"
STELLARTON, NS, May 30, 2014 /CNW/ – Crombie Real Estate Investment
Trust ("Crombie" or the "REIT") (TSX: CRR.UN) announced today that it
closed the previously announced public offering, on a bought-deal
basis, of 4,530,000 trust units (the "Units") at a price of $13.25 per
Unit for gross proceeds of $60,022,500. The offering was made under
Crombie's prospectus supplement dated May 23, 2014 supplementing the
(final) base shelf prospectus dated May 13, 2014.
In addition to the issuance of Units to the public, ECL Developments
Limited ("ECL"), a wholly-owned subsidiary of Empire Company Limited
(TSX: EMP.A), has purchased, on a private placement basis, 3,018,868
Class B LP Units of Crombie Limited Partnership ("Class B LP Unit")
together with the attached Special Voting Units of Crombie at a price
of $13.25 per Class B LP Unit, for gross proceeds of approximately $40
million. 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. After the closing of the
public offering and the private placement, Empire Company Limited holds
a 41.5% economic and voting interest in Crombie.
The REIT intends to use the net proceeds from both the offering and the
concurrent purchase by ECL to reduce outstanding borrowings under the
REIT's revolving credit facility and for general trust purposes,
including possible future acquisitions.
The underwriting syndicate was co-led by CIBC, BMO Capital Markets,
Scotiabank and TD Securities Inc., and also included National Bank
Financial Inc., RBC Capital Markets, Canaccord Genuity Corp.,
Desjardins Securities Inc. and Raymond James Ltd.
Crombie Real Estate Investment Trust is an open-ended real estate
investment trust established under, and governed by, the laws of the
Province of Ontario. Crombie currently owns a portfolio of 250
commercial properties across Canada, comprising approximately 17.6
million square feet with a strategy to primarily own and operate a
portfolio of high quality grocery and drug store anchored shopping
centres and freestanding stores in Canada's top 36 markets.
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 "continue", "may", "will", "estimate",
"anticipate", "believe", "expect", "intend" and similar expressions
have been used to identify these forward looking statements, and
include statements regarding the expected use of proceeds of the
offering and the ECL private placement. 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 risks discussed in the 2013 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.
SOURCE Crombie REIT