STELLARTON, NS, Sept. 30 /CNW/ – Crombie Real Estate Investment Trust
(“Crombie”) (TSX: CRR.UN) is pleased to report that it closed today the
previously announced mortgage financing with HBOS Canada (“HBOS”) to refinance
$100 million of the bridge loan used to partially finance the portfolio
acquisition of 61 properties completed on April 22, 2008. TD Securities acted
as agent on the transaction. The fixed rate mortgages have a weighted average
7.7 year term, with a 25 year amortization, and a weighted average interest
rate of 5.91%. Factoring in the cost of delayed interest rate swap hedges
placed upon assumption of the bridge loan, the overall weighted average
interest rate is 6.09%. This overall weighted average interest rate is 26
basis points lower than the 6.35% rate used to model the pro forma accretion
of the portfolio acquisition.
Commenting on the closing of the financing, J. Stuart Blair, President
and Chief Executive Officer stated: “While the credit markets continue to
prove to be challenging, the progress made in replacing a major portion of our
bridge loan with suitable long term financing is very encouraging. We are also
excited to be able to attract international financing as one of the early
deals completed by HBOS in Canada. We continue to have discussions with a
number of potential sources for completing the refinancing of the $180 million
bridge loan remaining.”
For more information about Crombie and this development read their press release.
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