STELLARTON, NS, Oct. 24 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced it has completed the sale of West End Mall in Halifax, Nova Scotia to OPB Realty Inc for total proceeds of $10.4 million.
West End Mall is a mixed-use facility located in Halifax with a gross leaseable area of approximately 204,000 square feet, located on a 4.3 acre site which is leased from Sears Canada Inc. and Foord Construction Limited ("Foord"), a subsidiary of Empire Company Limited.
The property is shadow anchored by The Bay, Wal-Mart and Sobeys and is 84.4% leased to 44 tenants, which include a number of retail stores and professional offices.
Crombie has used the proceeds from the sale to defease the CMBS mortgage outstanding on the property at a total cost of approximately $9 million. The remaining balance of funds, net of expenses, was used to reduce the bridge loan facility.
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 113 commercial properties in seven provinces, comprising approximately 11.1 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.
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 "may", "will", "estimate", "anticipate", "believe", "expect", "intention" and similar expressions have been used to identify these forward looking statements. 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 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 prospective purchaser 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.
Contact: Scott Ball, C.A., Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100