/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED
STATES/
NEW GLASGOW, NS, Jan. 31, 2022 /CNW/ - Crombie Real Estate
Investment Trust ("Crombie" or the "REIT") (TSX: CRR.UN) announced
today that it has closed its previously announced offering, on a
bought-deal basis, of $117 million of
trust units (the "Units") at a price of $17.45 per Unit to a syndicate of underwriters
co-led by Scotiabank and BMO Capital Markets.
In addition, ECL Developments Limited ("ECL"), a wholly-owned
subsidiary of Empire Company Limited ("Empire"), has purchased, on
a private placement basis, approximately $83
million of Class B LP Units of Crombie Limited Partnership
("Class B LP Unit"), together with the attached special voting
units of Crombie, at a price of $17.45 per Class B LP Unit. Each Class B LP Unit
is exchangeable for one Unit of Crombie at the option of the
holder. Upon exchange of a Class B LP Unit, the associated special
voting unit is cancelled. After the closing of the public offering
and the private placement, Empire continues to hold a 41.5%
economic and voting interest in Crombie.
The REIT intends to use the net proceeds from both the offering
and the concurrent purchase by ECL to repay outstanding
indebtedness, to fund the REIT's development pipeline and value-add
capital programs with Empire, and for general trust purposes.
The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, or applicable
state securities laws, and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy any securities in any
jurisdiction.
About Crombie
Crombie Real Estate Investment Trust invests in quality real
estate that enhances local communities and is adaptable to
long-term growth. As one of the country's leading national retail
property landlords, Crombie's portfolio includes grocery-anchored
retail, shopping centres, retail-related industrial, and mixed-use
developments in Canada's top urban
and suburban markets. Crombie is an unincorporated, open-ended real
estate investment trust established under, and governed by, the
laws of the Province of Ontario.
Learn more at www.crombie.ca.
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 use of proceeds of the offering and the ECL private
placement. 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, including those risks discussed under
"Risks" in Crombie's Annual Information Form for the year ended
December 31, 2020, 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.
More information about Crombie can be found on Crombie's web
site at www.crombie.ca or on the SEDAR web site for Canadian
regulatory filings at www.sedar.com.
SOURCE Crombie REIT