Crombie Real Estate Investment Trust agreed to sell an 89% nonmanaging interest in a 15-asset retail portfolio to an affiliate of Oak Street Real Estate Capital LLC for roughly C$193.3 million.
The real estate investment trust, which will retain an 11% ownership interest in the assets, will remain the manager and operator of the roughly 720,698-square-foot portfolio of mostly free-standing grocery-anchored properties.
The assets are fully leased and are subject to long-term leases with Sobeys. Crombie intends to head lease the properties from a jointly owned nominee with terms similar to those of the Sobeys leases.
Crombie expects to receive roughly C$102.6 million of net proceeds, which will be used to fund the company's development projects, capital investments in properties leased to Sobeys, repayment of existing indebtedness and for general trust purposes.
The deal is expected to close in the fall, subject to certain conditions.
BMO Capital Markets Real Estate Inc. is Crombie's exclusive adviser on the deal.