Crombie Real Estate Investment Trust
TSX : CRR.UN

Crombie Real Estate Investment Trust

September 29, 2011 16:18 ET

Crombie REIT Announces $75 Million Unit Offering

STELLARTON, NOVA SCOTIA--(Marketwire - Sept. 29, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Crombie Real Estate Investment Trust ("Crombie") (TSX:CRR.UN) announced today that it has entered into 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, 3,510,000 units (the "Units") at a price of $12.85 per Unit for gross proceeds of approximately $45 million. Concurrently, ECL Developments Limited (a wholly owned subsidiary of Empire) in satisfaction of its pre-emptive right with respect to the public Unit offering will subscribe for approximately 2.33 million Exchangeable LP Units at a price of $12.85 per Unit for additional gross proceeds of $30 million. The total of approximately $75 million is subject to regulatory approval.

Crombie intends to use the net proceeds from this offering to repay floating rate debt as well as general REIT purposes, which may include future acquisitions completed in the ordinary course.

The terms of the offering will be described in a short form prospectus to be filed with Canadian securities regulators in all provinces of Canada. The offering of Units is expected to close on or about October 20, 2011.

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 136 commercial properties in eight provinces, comprising approximately 12.3 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.

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 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 2010 management's discussion and analysis, and of Crombie's management's discussion and analysis for the quarter ended June 30, 2011, and in the "Risks" section of Crombie's annual information form in respect of the year ended December 31, 2010, 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 www.crombiereit.com or on the SEDAR web site for Canadian regulatory filings at www.sedar.com.

Contact Information

  • Crombie REIT
    Mr. Glenn Hynes, C.A.
    Chief Financial Officer and Secretary
    (902) 755-8100