Crombie REIT has formed a new partnership with Wesgroup Properties to advance four Canada Safeway store redevelopment projects in the Vancouver region through the entitlement and design process.

As part of the deal, Wesgroup has acquired Empire Company Limited’s 50% limited partnership interest in Safeway sites at Kingsway and Tyne Street in east Vancouver and Weslynn Mall in the Lynn Valley Town Centre in North Vancouver, B.C. Crombie and Wesgroup have also created two new joint-ventures in the 4400 block of Hastings Street site in Burnaby, B.C., and the Safeway location West Broadway and MacDonald Street on Vancouver’s west side.

The mixed-use redevelopments are slated to include revamped Safeway stores and multi-residential components. The REIT retains 100% ownership of all four properties and will continue collecting rental income, said Crombie.

The partnership structure calls for shared costs and will immediately generate fee income for Crombie through its development and management services. The arrangement is designed to unlock embedded value, generate stable cash flows, and maintain long-term optionality on each site’s future development.

“Once entitlement is achieved, both parties will align on the optimal path forward, including timing and participation,” said Crombie in a news release. 

Wesgroup is a prominent real estate developer in the Vancouver area, and the collaboration aims to accelerate entitlement efforts while enhancing New Glasgow, N.S.-based Crombie’s capacity for further investment in its core retail portfolio.

Pictured: Crombie-owned Canada Safeway store site in Burnaby, B.C.

Photo: Crombie REIT

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