Sobeys to Sell 61 Properties to Affiliated REIT

STELLARTON, Nova Scotia — Empire Cos., the parent of the Sobeys chain here, said Monday that it had reached an agreement to sell 61 properties to Crombie REIT, a real estate investment trust 48.1% owned by Empire. The $428.5 million deal is expected to generate net proceeds of $280 million to be used to repay Empire and Sobeys debt, Empire said. The properties being sold include 40 freestanding grocery stores and 21 shopping centers totaling 3.3 million square feet. Sobeys has agreed to enter into new lease agreements with Crombie on the sold properties ranging from 17 to 23 years, Empire added.

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