Crombie REIT explained

Crombie REIT
Type:Public, REIT
Traded As:
S&P/TSX Composite Component
Foundation:February 4, 1964
Location:New Glasgow, Nova Scotia
Industry:Real estate investment trust
Parent:Crombie REIT
Homepage:crombie.ca/

Crombie REIT (formerly Atlantic Shopping Centres, then Crombie Properties) is a Canadian unincorporated open ended publicly traded real estate investment trust which trades on the Toronto Stock Exchange and has an estimated market capitalization of $1.6 billion.[1] The company is based in New Glasgow, Nova Scotia.[2] [3] [4] [5] [6] [7]

History

Crombie REIT was founded on February 4, 1964 as Atlantic Shopping Centres Limited.[8] During the 1990s, the company merged with Halifax Developments Limited (known for Scotia Square), as well as Canadian Shopping Centres Limited. In the mid-2000s, the company was renamed as it expanded beyond both the Atlantic region as well as shopping centres.

It was converted in 2006 into an unincorporated open ended publicly traded real estate investment trust which trades on the Toronto Stock Exchange. Its largest unitholder is Empire Company Limited (ECL) which as of mid-2013 owned approximately 40% of the units in the REIT. ECL controls the Sobeys supermarket chain which is also the REIT's major tenant.[9]

Controversy

In January 2014, Crombie's commercial leasing division issued eviction notices to two local food vendors, Ray's Lebanese Cuisine and A Taste of India, in the Scotia Square food court in Halifax, Nova Scotia. A petition to save the two popular restaurants' leased tenancy was circulated in February and received over 5200 signatures. Many local patrons expressed anger and disappointment in Crombie's actions through social media.[10] Ray's was the most longstanding eatery in the mall, having been operated by Ray Khattar for 31 years.[11] He initially agreed to a doubling of his rent, from $5,000 to $10,000, but was then served an eviction notice regardless.[11] Crombie was criticized for forcing out local businesses in favour of chain operations like McDonald's and Subway, having also evicted another popular eatery (PG's) in 2011 to make way for a bigger Tim Horton's.[11] [12] [13] An article in The Coast lamented that Scotia Square's was the "best mall food court in the country, with interesting and varied local operations, and yet there seems to be a conscious effort to destroy that reputation."[12]

In a follow-up news article, the CBC reported that Crombie had recanted and stated the businesses could stay, but demanded a doubling of the rent, a percentage of the sales, and a relocation of the outlets to a different part of the food court.[14] While Ray's Lebanese Cuisine has left the Scotia Square food court, A Taste of India relocated to a new counter within the facility near their original spot.

Notes and References

  1. Web site: Reuters. CROMF.PK - Crombie Real Estate Investment Trust Profile Reuters. 2021-05-21. Reuters. en.
  2. Web site: CRR.UT Crombie Real Estate Investment Trust Stock Price & News. 2021-05-21. WSJ. en. 2021-05-21. https://web.archive.org/web/20210521172710/https://www.wsj.com/market-data/quotes/ca/xtse/CRRUT. live.
  3. Web site: Crombie Real Estate Investment Trust. live. Bloomberg. https://web.archive.org/web/20210521172710/https://www.bloomberg.com/profile/company/CRR-U:CN . 2021-05-21 .
  4. News: Three REITs that are built to ride out a second wave. John. Heinzl. September 25, 2020. The Globe and Mail. 2021-09-18. 2021-09-18. https://web.archive.org/web/20210918214618/https://www.theglobeandmail.com/investing/education/article-choice-crombie-and-ct-are-high-yielding-reits-built-to-withstand-a/. live.
  5. Web site: 2021-07-06. $100M new look, facilities and tenant mix at Crombie's Avalon Mall. 2021-09-18. RENX - Real Estate News Exchange. en-US. 2021-09-18. https://web.archive.org/web/20210918214621/https://renx.ca/100m-new-look-facilities-tenants-crombie-avalon-mall/. live.
  6. Web site: Adam. Othman. 2021-07-28. Buy These 3 REITs For Reliable Dividend Income. 2021-09-18. The Motley Fool Canada. en-CA. 2021-09-18. https://web.archive.org/web/20210918215754/https://www.fool.ca/2021/07/28/buy-these-3-reits-for-reliable-dividend-income/. live.
  7. Web site: 2021-03-04. Construction on hold at Crown Isle Shopping Centre. 2021-09-18. Comox Valley Record. en-US. 2021-09-18. https://web.archive.org/web/20210918215756/https://www.comoxvalleyrecord.com/news/construction-on-hold-at-crown-isle-shopping-centre/. live.
  8. Web site: Crombie Real Estate Investment Case ipl.org. 2021-05-21. www.ipl.org. 2021-05-21. https://web.archive.org/web/20210521172711/https://www.ipl.org/essay/Crombie-Real-Estate-Investment-Case-FKNZQTQBGXFV. live.
  9. Web site: Crombie REIT completes IPO and enters into $150 million revolving credit facility. 2021-05-21. www.fasken.com. March 2006. en. 2021-05-21. https://web.archive.org/web/20210521172711/https://www.fasken.com/en/solution/clientwork/2006/03/crombie-reit-completes-ipo-and-enters-into-$150-million-revolving-credit-facility. live.
  10. News: 'Save' Ray's, A Taste of India petition gets 5K signatures. 19 April 2014. CBC News. 17 February 2014. 12 April 2014. https://web.archive.org/web/20140412153254/http://www.cbc.ca/news/canada/nova-scotia/save-ray-s-a-taste-of-india-petition-gets-5k-signatures-1.2540394. live.
  11. News: Bundale. Brett. Ray's, Taste of India exit Scotia Square. 19 April 2014. Halifax Chronicle-Herald. 28 March 2014. 19 April 2014. https://web.archive.org/web/20140419232739/http://thechronicleherald.ca/business/1183569-ray-s-taste-of-india-exit-scotia-square. live.
  12. News: Bousquet. Tim. Ray's Lebanese Food and A Taste of India are being evicted from Scotia Square. 19 April 2014. The Coast. 31 January 2014. 20 April 2014. https://web.archive.org/web/20140420023411/http://www.thecoast.ca/RestaurantandBarNews/archives/2014/01/31/rays-lebanese-food-and-a-taste-of-india-are-being-evicted-from-scotia-square. live.
  13. News: Bousquet. Tim. People's court. 19 April 2014. The Coast. 6 February 2014. 20 April 2014. https://web.archive.org/web/20140420023241/http://www.thecoast.ca/halifax/peoples-court/Content?oid=4254913. live.
  14. News: Ray's serves its final customers at Scotia Square. 19 April 2014. CBC News. 28 March 2014. 10 April 2014. https://web.archive.org/web/20140410183410/http://www.cbc.ca/news/canada/nova-scotia/ray-s-serves-its-final-customers-at-scotia-square-1.2590461. live.

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