08:33 AM EDT, 09/30/2024 (MT Newswires) -- Crombie Real Estate Investment Trust (CRR-UN.TO) said on Monday that it will acquire from Westbank the 50% in Zephyr, a mixed-use residential asset in British Columbia, that it does not already own for $133 million.

Closing is scheduled in October, subject to Competition Bureau approval.

"We are pleased to announce that upon closing of this transaction, Crombie will become the sole owner of one of Canada's premier rental residential assets," Crombie President and CEO Mark Holly said. Zephyr is in one of the country's top markets and further enriches the quality of our rental residential platform.

As a result of the acquisition, Crombie said it will assume the additional 50% of existing mortgages, equivalent to about $89 million, with remaining term to maturity of over three years and the balance of the purchase price funded by drawing on a new unsecured bank credit facility. Together, the debt has an attractive blended interest rate of 3.4%.