Crombie REIT Acquires 19 Retail Properties, 3 DCs From Empire Co
Crombie REIT has a deal to acquire a portfolio of 19 retail sites, a 50% interest in three Sobeys distribution centres (including 8265 Huntington Rd in Vaughan, above), and two parcels of development land adjacent to existing REIT-owned sites in Halifax. The trust also is expanding 10 Sobeys-anchored sites it already owns. Crombie bought the properties—a total 2.2M SF of 99%-occupied GLA in 12 standalone Sobeys stores and seven grocery-anchored plazas under the Sobeys, Safeway, IGA and Thrifty Foods banners—from wholly-owned subsidiaries of Empire Co for $360M; $58M will be invested in modernizations.
The acquisitions grow the REIT’s portfolio to 19.2M SF and Crombie says the deal will improve its urban concentration, as 80% of the value of the purchased properties (including 4440 Hastings St in Burnaby, above) is in Canada's six largest markets. The transaction also results in Sobeys representing a greater percentage of the REIT's tenant base, contributing 54% to its total annual minimum rent. CEO Donald Clow noted the transaction “exemplifies the sustainable competitive advantage that Crombie leverages via its relationship with Empire and Sobeys.”
