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NEW GLASGOW, NS, June 28, 2016 /CNW/ – At the meeting of unitholders of Crombie Real Estate Investment Trust ("Crombie" or the "REIT") (TSX: CRR.UN) held on June 28, 2016, the unitholders adopted resolutions approving the issuance of 6,353,741 Class B LP Units of Crombie Limited Partnership, together with the attached Special Voting Units of Crombie, to wholly-owned subsidiaries of Empire Company Limited ("Empire") as consideration for approximately $93.4 million of the proposed $418 million purchase of: 1) a portfolio of nineteen (19) retail properties, 2) a 50% interest in three distribution centres, and 3) two parcels of development land adjacent to existing REIT properties, and investment in the renovation and expansion of 10 properties anchored by Sobeys Inc. and currently owned by Crombie (the "Transaction"), all as more fully described in the Management Information Circular for Unitholder Meeting, a copy of which is available at www.sedar.com.
There were 29,263,295 REIT units represented in person or by proxy at the meeting, representing an aggregate of 37.85% of all eligible votes. After excluding votes of Unitholders and holders of Class B LP Units, their associates and affiliates, who are participating directly or indirectly in the Transaction, as required to be excluded under the rules of the Toronto Stock Exchange, there were 29,147,661 votes in favour of the resolution approving the issuance of the 6,353,741 Class B LP Units of Crombie Limited Partnership, together with the attached Special Voting Units of Crombie, to wholly-owned subsidiaries of Empire as partial consideration for the Transaction and 115,634 votes against, representing approval by 99.60% of votes cast.
The Acquisition remains subject to certain conditions and is expected to close before the end of June 2016.
Crombie 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 261 retail, mixed use and office properties across Canada, comprising approximately 17.2 million square feet with a strategy to own and operate a portfolio of high quality grocery and drug store anchored shopping centres and freestanding stores primarily 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 timing for closing the Transaction following the closing of the Transaction. These statements reflect current beliefs and are based on information currently available to management of Crombie, and include, without limitation, statements regarding the expected use of proceeds of the Offering. Forward-looking statements necessarily involve known and unknown risks and uncertainties.
A number of factors, including the risk that the Transaction does not close as expected, the availability of required regulatory approvals, and those risks discussed in the 2015 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