Crombie REIT has entered into a joint-venture agreement with Montez Corporation to complete a commercial real estate development project in Halifax.

The REIT said the deal marks a significant expansion of its multi-residential development initiatives in Halifax. The agreement includes the sale of a 50% stake in the Marlstone to Montez.

The Marlstone is a mixed-use multi-family residential rental project In addition, the two firms have formed another JV to advance entitlements for two other key Halifax assets — Barrington Street and Brunswick Place.

Under the Marlstone Joint Venture, Montez will acquire a 50% interest in the Marlstone for a total purchase price of $32.2 million. Crombie will receive $19.2 million in cash, with Montez assuming $13 million in construction financing debt.

“These partnerships represent a significant milestone in Crombie’s value creation roadmap,” said Mark Holly, president and CEO of Crombie. “The partnerships provide immediate stabilized cash flow through predictable management fee income, while maintaining flexibility on how and when to proceed as each property advances through entitlement approvals.

“Importantly, the balance sheet capacity freed up by these arrangements enables us to continue our strategic investments in our core necessity-based retail portfolio, further enhancing the growth profile of our portfolio and creating long-term value for unitholders.”

The 291-unit Marlstone project will continue to be managed by Crombie, which will oversee development, construction, leasing, and asset management — and earn associated service fees.

Crombie and Montez will share all entitlement and design-related costs equally. Crombie will lead the entitlement efforts and manage both properties throughout the process, earning development and management service fees along the way.

Both Barrington Street and Brunswick Place will remain fully owned by Crombie during the entitlement phase. Following that, the partners will determine the best course of action for development and investment.

Pictured: The Marlstone multi-family rental project in Halifax.

Photo: Crombie REIT

Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28 at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multifamily housing, and much more. www.ConnectCanada2025.com