Market News

Empire to Establish REIT

Empire Co., which controls Sobeys Inc., has announced plans to set up a real estate investment trust that will focus on developments outside eastern Canada. The Stellarton, NS-based company plans to retain a 49.5% ownership stake in Crombie Real Estate Investment Trust, subject to the effects of a 5% overallotment option granted to the underwriters. The REIT will initially own a mixed portfolio of 44 properties, including strip malls, enclosed shopping centres and office buildings. It will capitalize on its relationship with Sobeys to drive expansion in neighbourhood shopping centres. Grocery-store-anchored malls have proven a successful cash-flow generator. Empire has a long-standing real-estate subsidiary that has developed sites for other arms of the Sobey family holdings. These include Sobeys Inc. and Empire Theatres Ltd. Source: Canadian Grocer E-Newsletter, January 30, 2005.