STELLARTON, N.S. — Empire Company Ltd. announced a plan Wednesday to sell 68 Safeway properties in a sale-leaseback deal with Crombie REIT for $990 million in cash.

The company, which owns the country’s second-largest grocer Sobeys Inc., said the properties involved in the sale are located in British Columbia, Alberta, Saskatchewan and Manitoba.

Metro Vancouver Properties Sold:

In early June, Empire signed an agreement to buy more than 200 grocery stores from Canada Safeway Ltd. in a $5.8-billion deal. At the time, it said that it intended to finance the acquisition with a $1 billion sale-leaseback that it would first offer to Crombie REIT.

“We are pleased to announce this sale leaseback transaction between Sobeys and Crombie REIT,” Empire president and chief executive Paul Sobey said in a statement.

“The sale proceeds will be used by Sobeys to assist in the funding of the Canada Safeway acquisition which provides Sobeys with a much stronger presence in Western Canada and allows them to benefit from increased economies of scale.”

Read more: http://business.financialpost.com/2013/07/24/empire-sells-68-safeway-properties-to-crombie-reit-in-990m-deal/

The Vancouver Honda dealership property at 850 SW Marine Drive has sold for $12,925,000 to Value Group Properties. The 2.1 acre site has over 460 feet of frontage on SW Marine Drive and a 2-storey, 45,621 square foot auto retail building occupied by Vancouver Honda. The dealership will lease back the property. The zoning for the property is I-2.

Small-business owners want B.C.’s new Christy Clark government to intervene in the marketplace and limit rent increases on commercial properties. The proposed changes to the province’s Commercial Tenancy Act would kick in when leases for small-business owners expire and would be aimed at providing property rent stability for independent businesses.

The idea of rent control, however, has plenty of critics because it flies in the face of free enterprise.

“There are reasons to regulate commercial leases,” said Mary Brookes, who owns Sophie’s Pet Palace on Commercial Drive. “One is to protect small businesses who employ locally, use local suppliers and create jobs, which has spinoff benefits.”

Vancouver Island University geography professor Don Alexander, who has co-written papers on the concept of commercial rent control, agreed.

“Small businesses contribute an enormous amount to the local economy because the money circulates more than if it goes to a chain store,” he said. “Small businesses are a benefit to social well-being and possibly to environmental well-being, so there’s a rationale in not allowing these guys to be as scarce as hen’s teeth.”

Two adjoining retail/office buildings at the corner of West 4th and Fir have sold for a reported $2,900,000. The buildings total 6,180 square feet, and include tenants such as The Right Shoe and Paris Orthotics.

In a $5.8-billion deal that will reshape Canada’s grocery industry, Sobeys Inc. is buying Safeway Inc.’s Canadian division to beef up its western business and take on intensifying competition.

The deal, announced late Wednesday, will solidify Sobeys’ position as the country’s second-largest grocer and put pressure on Loblaw Cos. Ltd., the leading player in the sector, which has struggled to make gains over the past several years.

“The acquisition of Canada Safeway represents an excellent strategic fit, strengthening our presence in Western Canada,” said Paul Sobey, chief executive officer of Sobeys‘ parent company Empire Co. Ltd.

The agreement comes at a time of growing competition in food retailing as discount giant Wal-Mart Canada Corp. rapidly adds more grocery aisles to its stores and U.S. rival Target Corp. opens its first outlets in this country, raising the competitive stakes for everyone.

Read more: http://www.theglobeandmail.com/report-on-business/sobeys-to-buy-safeway-in-58-billion-deal/article12499648/