Empire Company Limited through its wholly-owned subsidiary, Sobeys Inc., announced that Sobeys had arrived at a definitive agreement with Crombie Real Estate Investment Trust. Sobeys is to offer 68 properties to Crombie Real Estate for an aggregate price of US$990 million in cash. The 68 properties comprised of roughly 3 million square-feet of gross leasable space. According to the companies involved, the deal is still subject to customary adjustments.
The properties are situated in Western Canada. Approximately 4.8% of the property is located in Saskatchewan, 13% in Manitoba, 39.6% is located in British Columbia, and 42.6%, the bulk of the gross leasable area, is in Alberta.
"We are pleased to announce this Sale Leaseback Transaction between Sobeys and Crombie REIT. The sale proceeds will be used by Sobeys to assist in the funding of the Canada Safeway acquisition which provides Sobeys with a much stronger presence in Western Canada and allows them to benefit from increased economies of scale. The Sale Leaseback Transaction provides Crombie REIT with an attractive portfolio of assets. Empire is pleased to announce that it will purchase $150 million of Crombie Class B Limited Partnership units," Empire President and CEO, Paul D. Sobey, explained.
Join the Conversation