Crombie Real Estate Investment Trust

Crombie Real Estate Investment Trust

June 04, 2009 15:48 ET

Crombie REIT Announces $65 Million Unit Offering

STELLARTON, NOVA SCOTIA--(Marketwire - June 4, 2009) -


Crombie Real Estate Investment Trust ("Crombie") (TSX:CRR.UN) announced today that it has reached an agreement with a syndicate of underwriters co-led by CIBC World Markets Inc. and TD Securities Inc to issue, on a bought-deal basis, 4,500,000 units to the public at a price of $7.80 per unit for gross proceeds of approximately $35.1 million. Final unit issuance is subject to regulatory approval. Crombie has also granted the underwriters an over-allotment option to purchase up to an additional 225,000 units at the issue price which, if fully exercised, would result in additional gross proceeds of approximately $1.8 million.

In addition to the issuance of the public units, in satisfaction of its pre-emptive right with respect to the public unit offering and subject to regulatory approval, Empire Company Limited ("Empire") has agreed to take approximately $30 million of Class B LP Units of Crombie Limited Partnership and Special Voting Units of Crombie at the $7.80 offering price on a private placement basis through its subsidiary ECL Developments Limited. Each Class B LP Unit is exchangeable for one unit of Crombie at the option of the holder. All securities issued under the private placement are subject to a four month hold period from the respective closing date of the private placement.

Crombie will use the net proceeds from the public offering and the private placement to provide additional financial flexibility by reducing the outstanding borrowings under the secured floating rate revolving credit facility and for general trust purposes, which may include future property acquisitions.

The terms of the offering will be described in a short form prospectus to be filed with Canadian securities regulators. Both the public offering and the private placement with Empire are expected to close on or about June 25, 2009.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The units 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.

About Crombie

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 11.2 million square feet of rentable space.

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 the expected closing date 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 2008 management's discussion and analysis, and of Crombie's management's discussion and analysis for the quarter ended March 31, 2009, and in the "Risks" section of Crombie's annual information form in respect of the year ended December 31, 2008, 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 statements.

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

Contact Information

  • Crombie REIT
    Scott Ball, C.A.
    Vice President, Chief Financial Officer and Secretary
    (902) 755-8100