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Crombie Real Estate Investment Case

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Introduction
Commercial real estate is defined as the one of the third primary type of real estate. This real estate is usually attracting real estate investment trusts, local or national real estate operating companies and institutional investors as a diversified investment. Such companies acquiring commercial real estate for lease purposes because it gives very stable cash flows as lease contracts are usually long and cash flow is often greater comparing to residential real estate or industrial real estate. Also, the return on investment from commercial real estate is generally higher than dividends from stocks, bonds etc. Moreover, the future value of property itself increases overtime along with the growing population and cities themselves. …show more content…

It is an open-ended real estate investment trust. The company was founded in 1964 in Nova Scotia and was converted into an unincorporated open-ended publicly traded real estate investment trust in 2006. Crombie primary focuses on acquiring and operating grocery and drug stores within the shopping centers and malls and freestanding stores. Crombie owns property in 6 provinces in Canada that includes: Nova Scotia, New Brunswick, Newfoundland and Labrador, Quebec, Ontario, and Alberta. Crombie’s portfolio fair value is about $4.1 billion Canadian dollars. Company manages by 350 employees that increase company performance and provide excellent proactive service that enables Crombie operates with high efficiency and always be in market tends.
Crombie’s investment strategy is based on diversified commercial real estate in Canada, generating stable cash flow and providing our shareholders with opportunity to participate in Distribution Reinvestment Plan which allows shareholder to use 3% discount on reinvestments from the market price of Crombie’s stocks.

Commercial property for sale: 377 Yonge Ave, …show more content…

I also have maid a customer feedback research on Yelp and similar websites, and find out that people like these franchise for good not expensive and relatively good quality service. Our company would definitely be interested in acquiring such a property for future leas purposes. The contract for lease will end this summer for the owner of the restaurant, however we can assume that the contract will be extended for future partnership as Tea Shop 168 has established a good reputation in the area and people like it. From the other hand, if the owner of Tea Shop 168 would decide to not to continue the contract, it will not be difficult to find the client as the area is highly profitable for different

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