Crombie REIT Makes Acquisition of Five Property Portfolio

Crombie Real Estate Investment Trust  announced  that it has completed the acquisition of five retail properties from affiliated entities of Shoppers Drug Mart Inc. for a purchase price of approximately $42.8 million, subject to closing adjustments . The Properties include total gross leasable area of approximately 107,000 square feet, with three Properties located in Quebec and one each in Ontario and Alberta.

Crombie will complete mortgage financing totaling approximately $29.1 million on the properties, with mortgages on four locations funding immediately following closing of the acquisition. An additional mortgage on the fifth property is expected to fund before the end of June. The mortgages have interest rates ranging from 4.15% to 4.33% with 10 to 17 year terms and 25 year amortizations. The balance of the Purchase Price, closing adjustments and transaction costs was drawn from Crombie's existing revolving credit facitity (the "Revolver").

Crombie also completed the annual renewal of its Revolver, extending its term to maturity one year to June 30, 2015.  As part of the renewal, Crombie exercised and gained lender approval for the $50 million accordion feature on the Revolver, increasing the maximum authorized credit under the Revolver to $200 million, subject to available borrowing base, and including both funds drawn on the facility and issued Letters of Credit.

"With the completion of this transaction, Crombie has added to its portfolio of high quality assets across Canada and, importantly, increased our geographic diversification," commented Donald E. Clow FCA, Crombie's President and Chief Executive Officer. "The acquisition is anticipated to be accretive to Crombie's Adjusted Funds From Operations ("AFFO") per unit.  We are also pleased with the renewal of our Revolver and the additional $50 million afforded under the accordion feature. We are committed to maintaining a strong balance sheet with ample liquidity. Our Revolver renewal combined with the recently announced $60 million, 5.00%, seven-year Convertible Debenture issuance which is expected to close on July 3, 2012 provides additional liquidity and balance sheet strength to support our future growth stategy."

on June 29, 2012