- What Crombie REIT has agreed to acquire Westbank Corp.’s 50% stake in the Zephyr for $133m
- Why The company owned the other 50% plus the retail component
- What next The deal is set to close in October
Crombie REIT has agreed to buy its partner Westbank Corp.’s 50% stake in a mixed-use multifamily property in Vancouver for $133m.
Following the deal’s close, expected in October, Crombie will own the entire two-tower residential component of the 330-unit Zephyr, at 1661 Davie Street in the city’s West End. The apartments were 94% occupied as of June.
The company also owns the retail space on the property’s ground floor. That portion is anchored by Safeway, and other tenants include BC Liquor Store and Scotiabank.
Crombie, based in New Glasgow, N.S., plans to consolidate Zephyr and assume the additional 50% of existing mortgages, amounting to approximately $89m. These mortgages have a remaining term of over three years.
It will finance the remainder of the purchase price via a draw on a new, unsecured bank-credit facility. The debt has a blended interest rate of 3.4%.
