The Chronicle Herald (Provincial)
Crombie REIT raises $100M in bought deal
New Glasgow-based Crombie Real Estate Investment Trust has announced that it intends to use the net proceeds from a $100-million equity offering to pay down debt, fund its development pipeline and value-add capital programs, and for general trust purposes.
Crombie, an unincorporated, open-ended real estate investment trust, indicated in a news release that it has entered into an agreement to sell, on a bought-deal basis, 58.5 million trust units at a price of $16.60 per unit to a syndicate of underwriters coled by Scotiabank and BMO Capital Markets.
Management said the deal is expected to close on or about May 19, subject to receipt of Toronto Stock Exchange and other necessary regulatory approvals.
In addition, ECL Developments Ltd., a wholly owned subsidiary of Empire Co. Ltd., parent company of the Sobeys grocery chain, will purchase about $41.5 million worth of Class B LP units of Crombie Limited Partnership and the associated special voting units of Crombie, on a private placement basis, on the same terms in satisfaction of its pre-emptive right with respect to the offering.
The units issued will be offered consistent with the REIT'S base shelf prospectus dated July 23, 2020. The terms of the offering will be described in a prospectus supplement to be filed with securities commissions and other similar regulatory authorities in each of the provinces on or about Wednesday.
In the release, Crombie REIT management indicated that it invests in what it describes as “quality real estate” that enhances local communities and is adaptable to longterm growth.
One of the country's leading national retail property landlords, the REIT'S portfolio includes grocery-anchored retail, shopping centres, industrial and mixed-use developments in Canada's top urban and suburban markets.