EL7.AI
StocksMedium•15 November 2026•
4 min read

Crombie raises $200 million to fund grocery-anchored property acquisitions

Key Facts

1Crombie announced an equity financing totaling about $200 million on November 9, 2026.
2The financing includes an offering of 7,312,500 units at $16.00 per unit, for proceeds of about $117 million, and a private placement of about $83 million.
3Crombie will buy the remaining 89% interest in 15 properties for $216.2 million, while assuming about $56 million of mortgage debt.
4The two acquisitions together will add about 1.2 million square feet, for a total purchase price of about $350 million and an estimated combined initial capitalization rate of about 6.0%.
5The offering and private placement are expected to close on or about November 18, 2026, subject to approvals and closing conditions.

Crombie REIT announced on November 9, 2026, an equity financing totaling about $200 million to provide part of the funds needed for two property acquisitions, as well as debt repayment and general trust purposes. The financing consists of a public offering of 7,312,500 units at $16.00 per unit, for gross proceeds of about $117 million. Concurrently, ECL Developments, a wholly owned subsidiary of Empire, agreed to purchase about $83 million of units through a private placement. Crombie said net proceeds will fund part of the acquisition prices and closing costs, and will also be used to repay debt, including amounts outstanding under its revolving credit facility. The announcement is part of plans to add grocery-anchored retail properties, while completion of the financing remains subject to closing conditions and regulatory approvals.

One transaction involves Crombie’s purchase of the remaining 89% interest in a joint venture portfolio of 15 necessity-based retail properties for $216.2 million before closing and transaction costs, while assuming about $56 million of existing mortgage debt. Crombie sold the interest in 2019 but continued to manage and operate the properties, and is buying it back under the right of first offer in the joint venture agreement. The portfolio comprises about 721,000 square feet of gross leasable area, including Crombie’s existing interest. On closing, the deal will add about 641,000 square feet to the trust’s interest, and the trust will own the properties in full. The company said the properties are fully occupied and anchored by Safeway, Sobeys, FreshCo and IGA Extra stores, and that Empire accounts for about 98% of minimum annual rent, with a weighted average lease term of about 15.9 years.

The second transaction involves the purchase of a 100% interest in a portfolio of 13 necessity-based retail properties in Ontario, with total area of about 588,000 square feet, for about $134 million before closing and transaction costs. The portfolio consists of nine properties anchored by Sobeys stores, two by Walmart and two by Shoppers Drug Mart. Crombie said the properties are fully occupied and Empire accounts for about 60% of minimum annual rent. The portfolio’s weighted average lease term is about 4.6 years, according to the company’s announcement. The transaction is scheduled to close in November 2026, subject to customary closing conditions.

Crombie said the two acquisitions together will add about 1.2 million square feet to its interest, for a total purchase price of about $350 million before closing and transaction costs. The company estimated the combined initial capitalization rate for the transactions at about 6.0%. If completed, Crombie’s portfolio is expected to comprise 324 properties with total area of about 20.7 million square feet. The company also expects committed occupancy of about 97.9% and a weighted average lease term of about 7.9 years. The portfolio comprised 311 properties with about 19.4 million square feet as of September 30, 2026, including the company’s interest in joint ventures.

Empire is expected to retain about 41.5% of the economic interests and voting rights in Crombie after the financing closes, according to the company’s announcement. The financing follows third-quarter results published on November 4, 2026, when property revenue rose 6.2% to $127.586 million from $120.084 million in the same period of 2025. Funds from operations per unit increased 3.0% to $0.34 from $0.33 a year earlier. Management attributed property revenue growth to recent acquisitions, new leasing and lease renewals. It said, however, that lower operating income attributable to unitholders was linked to property impairments, higher interest expenses and lower development management fees, partly offset by revenue growth.

The offering and private placement are expected to close on or about November 18, 2026, subject to customary closing conditions and regulatory approvals, including approval from the Toronto Stock Exchange. Crombie has made completion of each of the offering and private placement conditional on the completion of the other. The company expects the purchase of the remaining interest in the joint venture portfolio to close in late the fourth quarter of 2026 or early the first quarter of 2027. That transaction remains subject to customary closing conditions, including approval under Canada’s Competition Act. These dates set the expected timeframe for financing the expansion and adding the properties to the trust’s portfolio.