Business
Empire and Sobeys Announce Agreement to Sell 68 Canada Safeway Properties to Crombie REIT for $990 Million and Empire Announces $150 Million Equity Investment in Crombie REIT
NOT FOR DISTRIBUTION IN THE U.S. STELLARTON, NS, July 24, 2013 /CNW/ - Empire Compa...
About this update from Empire Co Ltd Class A
[{"type":"text","content":"\n\n\nNOT FOR DISTRIBUTION IN THE U.S.\n\n\nSTELLARTON, NS, July 24, 2013 /CNW/ - Empire Company Limited (\"Empire\" or the \"Company\") (TSX: EMP.A) and its wholly-owned subsidiary, Sobeys Inc. (\"Sobeys\"), have announced that Sobeys has reached a definitive agreement to\n sell 68 properties (the \"Properties\") representing approximately 3.0 million square feet of gross leasable\n area to Crombie Real Estate Investment Trust (\"Crombie REIT\") for an aggregate purchase price of $990 million in cash, subject to\n certain customary adjustments (the \"Sale Leaseback Transaction\").  All the properties are located in Western Canada, with 39.6 percent\n of the Properties' gross leasable area located in British Columbia,\n 42.6 percent in Alberta, 4.8 percent in Saskatchewan and 13.0 percent\n in Manitoba.\n\n\nOn June 12, 2013, Empire and Sobeys announced that Sobeys had reached a\n definitive agreement with Safeway Inc. to acquire substantially all of\n the assets of Canada Safeway Limited (\"Canada Safeway\") for a cash purchase price of Cdn. $5.8 billion, subject to a working\n capital adjustment, plus the assumption of certain liabilities.  That\n announcement disclosed Sobeys' intention that financing for the\n acquisition included a $1.0 billion sale leaseback of acquired real\n estate assets and that Crombie REIT had a right of first offer in\n respect of any real estate sales undertaken by Sobeys.  The Sale\n Leaseback Transaction announced today is the conclusion of that\n negotiation process.  The proceeds from this transaction will be used\n to assist in the financing of the acquisition of Canada Safeway by\n Sobeys.\n\n\nPaul D. Sobey, President and CEO of Empire stated, \"We are pleased to\n announce this Sale Leaseback Transaction between Sobeys and Crombie\n REIT. The sale proceeds will be used by Sobeys to assist in the funding\n of the Canada Safeway acquisition which provides Sobeys with a much\n stronger presence in Western Canada and allows them to benefit from\n increased economies of scale. The Sale Leaseback Transaction provides\n Crombie REIT with an attractive portfolio of assets. Empire is pleased\n to announce that it will purchase $150 million of Crombie Class B\n Limited Partnership units.\"\n\n\nAs a condition of closing, wholly-owned subsidiaries of Sobeys, as\n tenant, will enter...