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STELLARTON, NS, March 17 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that the underwriters of its previously announced public offering of 5,455,000 subscription receipts and $30 million aggregate principal amount of 7.0% extendible convertible unsecured subordinated debentures (the "Offering"), have notified Crombie of their intention to exercise their over-allotment option to purchase an addition 272,750 subscription receipts at a price of $11.00 per subscription receipt for additional gross proceeds of $3,000,250. The closing of the over-allotment option will occur concurrently with the closing of the Offering scheduled for March 20, 2008, resulting in aggregate gross proceeds to Crombie of $93,005,250, which will be used by Crombie to satisfy part 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 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 subscription receipts and debentures will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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 regarding the closing of the Offering. 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. Closing of the Offering is conditional on the finalization of acceptable closing documentation to Crombie and the underwriters and the timing of the closing of the Offering may not occur as planned. 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.
Additional information relating to Crombie can be found on Crombie's web site at www.crombiereit.com or on the SEDAR web site for Canadian regulatory filings at www.sedar.com.
Contact: Scott Ball, C.A., Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100