Crombie REIT completed its acquisition of Westbank’s stake in a mixed-use property in Vancouver’s West End for $133 million.

New Glasgow-based Crombie purchased the remaining 50% of the residential component in the Zephyr complex at 1661 Davie Street from investment partner Westbank. The completion gives Crombie 100% ownership of the residential component in addition to the company’s ground-floor retail section anchored by a Canada Safeway grocery store.

“Zephyr is in one of the country’s top markets and further enriches the quality of our rental residential platform,” said Mark Holly, Crombie’s president and CEO, said in an earlier news release. “The acquisition delivers on our strategy of optimizing our portfolio and to own and operate high-quality assets in vibrant community hubs that serve the everyday essential needs of Canadians,:”

“Our strong financial condition allowed us to pursue this important opportunity providing immediate recurring cash flow with significant future growth potential.”  

Built in 2021, the property includes other necessity-based retailers and comprises two multi-residential towers offering panoramic views of English Bay and Stanley Park. The towers comprise 330 rental suites, and the property was about 94% occupied at mid-year 2024, said the REIT.

Vancouver-based Westbank, a major investment and development company, has made a series of divestments as part of a debt-reduction effort.

Crombie will fully consolidate Zephyr and assume the additional 50% of the property’s existing mortgages equivalent to approximately $89 million with remaining term to maturity of more than three years, said the REIT. The total debt has a blended interest rate of 3.5%.

Crombie is financing the balance of the purchase price by drawing on a new unsecured bank credit facility.

The announced completion indicates that Crombie obtained required Competition Bureau approval that it was going to seek. But Crombie did not comment on that aspect while announcing the deal’s closure.

Photo: Westbank