Crombie REIT announces $73.3 million of property acquisitions and $92.6 million debt refinancing transaction

Crombie REIT announces $73.3 million of property acquisitions and $92.6 
million debt refinancing transaction 
STELLARTON, NS, Oct. 22, 2012 /CNW/ - Crombie Real Estate Investment Trust 
("Crombie REIT") (TSX: CRR.UN) today announces the acquisition of four 
properties for total consideration of $73.3 million (before transaction and 
related costs) as well as a separate refinancing of mortgages on 23 properties 
totalling $92.6 million. 
"We are very pleased with the recent acquisitions as they are consistent with 
our strategy of accretive growth diversified across Canada" noted Donald E. 
Clow, FCA, President and Chief Executive Officer. "The two acquisitions from 
Sobeys underscore the sustainable competitive advantage we enjoy in acquiring 
new, fully occupied and long term leased properties from their development 
pipeline. The mortgage refinancing on 23 properties was a unique opportunity 
and provides us with significant interest savings." 
Details of the acquired properties are as follows: 


    --  In August, a 100% occupied, 41,000 sq. ft. Sobeys anchored
        retail plaza in Regina, Saskatchewan was acquired from a third
        party.
    --  In August, a 92% occupied, 135,000 sq. ft. mixed retail and
        office property in St. John's, Newfoundland and Labrador was
        acquired from a third party. This property is adjacent to
        Crombie's approximately 600,000 sq. ft. Avalon Mall complex.
    --  In October, a 100% occupied, 80,000 sq. ft. Sobeys anchored
        retail plaza in Stittsville (Ottawa), Ontario was acquired from
        a subsidiary of Sobeys Inc ("Sobeys").
    --  In October, a 100% occupied, 72,000 sq. ft. retail plaza in
        Moncton, New Brunswick was acquired from Sobeys. This property
        is anchored by a Sobeys grocery store and Lawtons drug store.

The properties were initially acquired using Crombie's revolving credit 
facility with Crombie assuming a $5.1 million mortgage upon closing of the 
Regina property. Crombie has commitments from lenders to place an additional 
$32.3 million in new mortgages on certain of the properties.

Details of the 23 property mortgage refinancing are as follows:
    --  On September 21, 2012 Crombie successfully arranged the
        purchase by Scotiabank of a portfolio of 23 mortgages granted
        by Crombie to a mortgage lender in 2008.
    --  The mortgages, which total $92.6 million in current principal
        amount, were scheduled to mature from 2013 to 2017 and carried
        a weighted average interest rate of 5.91%.
    --  Concurrent with the purchase of the mortgages by Scotiabank,
        Crombie renegotiated the terms of the mortgage debt to a 30
        month floating rate term facility with the interest rate based
        on 30 day Bankers Acceptance rates plus a spread.
    --  This term facility is expected to be repaid from the proceeds
        of new mortgage financings anticipated to be completed on some
        of the 23 properties.
    --  In its third quarter (Q3) of 2012, Crombie will expense
        approximately $3.0 million of costs associated with this
        transaction ($1.5 million in cash costs relating to legal fees,
        term facility set up costs and a repayment fee paid to the
        mortgage lender and the incurring of approximately $1.5 million
        representing the unamortized portion of deferred financing and
        other costs previously paid in respect of the 2008 mortgage
        financing). This Q3 cost impact on FFO and AFFO will
        approximate 2 to 3 cents per Unit.
    --  These incremental cash costs are anticipated to be recovered in
        full through interest savings in the first year, assuming
        interest rates remain at current levels.

About Crombie Real Estate Investment Trust

Crombie Real Estate Investment Trust is an unincorporated, 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 REIT currently owns 
a portfolio of 170 commercial properties in nine provinces, comprising 
approximately 14.0 million square feet of gross leasable area. More 
information about Crombie REIT can be found at www.crombiereit.com.

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 "may", "will", "estimate", "anticipate", "believe", "expect", 
"intend" and similar expressions have been used to identify these 
forward-looking statements. 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 discussed under "Risk 
Management" in Crombie's Management Discussion and Analysis for the year ended 
December 31, 2011, 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.

In particular, certain statements in this document discuss Crombie's 
anticipated outlook of future events, including the announced acquisition of 
properties, the anticipated funding of those acquisitions and the anticipated 
extent of interest savings, which could be impacted by a number of factors 
including changes in interest rates and the availability of new mortgage 
financing on acceptable terms. 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.

Glenn Hynes, FCA Chief Financial Officer and Secretary Crombie REIT (902) 
755-8100

SOURCE: CROMBIE REIT

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CO: CROMBIE REIT
ST: Nova Scotia
NI: REL MNA LOAN MNA MNA 

-0- Oct/22/2012 13:28 GMT