Stellarton, NS-Empire Company and Sobeys have recently revealed that Sobeys has reached a definitive agreement to sell 68 Safeway properties in Western Canada to Crombie Real Estate Investment Trust. The sale-leaseback is valued at $960 million USD or $990 million CAD. Crombie REIT is a real estate investment trust. The transaction will help finance Empire and Sobeys' acquisition of Safeway Canada.
Safeway revealed last month that it had entered into an agreement to sell its Canadian operations through a sale of the net assets of Canada Safeway Limited to Sobeys Inc. for $ 5.68 Billion USD in cash or $5.8 Billion CAD.
"We are please to announce this Sale Leaseback transaction between Sobeys ad 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," stated Paul D. Sobey, President and CEO of Empire. "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."
Check back with Delimarket.TV as we keep this transaction on our radar.
