Crombie REIT Acquires Safeway in Surrey for $12.7 Million

📅 2 weeks ago

Crombie REIT has finalized the acquisition of a Safeway property in Surrey, British Columbia, enhancing its income-producing portfolio with plans for future developments in the region.

Crombie Real Estate Investment Trust (REIT), based in Nova Scotia, has announced the successful acquisition of a Safeway supermarket located at 12825 16 Avenue in Surrey, British Columbia. The transaction was detailed in their financial report for the second quarter of 2026, released last week. This Safeway is positioned at the northeast corner of the intersection of 16 Avenue and 128 Street in South Surrey and is believed to be part of the Ocean Park Shopping Centre, although it is classified as a separate legal parcel.
The Ocean Park Shopping Centre houses several retailers, including Rexall, BC Liquor, Coast Capital Savings, and Cobs Bread, and is owned by Rural Stores Ltd. Crombie REIT now owns the Safeway Ocean Park under Crombie Property Holdings Limited. The property was acquired in late April from a subsidiary of Empire Company Limited, which operates Safeway and is among the largest unitholders in Crombie REIT. The purchase price for the property was $12.7 million, excluding any closing and transaction costs.
The Safeway property spans 30,000 square feet and has been categorized under Crombie REIT’s income-producing strategy rather than redevelopment, indicating that there are currently no immediate plans for redevelopment despite potential future considerations.
In its Q2 2026 report, Crombie REIT outlined a robust development pipeline that includes 25 sites, with 12 located in British Columbia. Among these, two projects are classified as near-term. The Belmont Market project at 3011 Merchant Way in Langford, Vancouver Island, has completed its first phase, which consists of an open-air shopping center anchored by Thrifty Foods. The second phase is set to introduce around 200 residential units, with entitlements already secured.
Another near-term project is the redevelopment of a Safeway adjacent to Commercial-Broadway Station in Vancouver, which Crombie is collaborating on with Westbank. After extensive public hearings and revisions, the Vancouver City Council approved the three-tower project last year. Crombie anticipates the enactment of the rezoning by-law before the year ends and has hinted at exploring monetization options for the project, where it will retain full ownership of the retail component and half of the residential component.
Crombie REIT has also identified two medium-term projects in British Columbia. One involves the redevelopment of the Safeway located at 1170 E 27th Avenue in North Vancouver, which is west of the Lynn Valley Centre shopping mall. Crombie had submitted a preliminary application in November 2021 for four residential buildings totaling 479 units and announced Wesgroup Properties as a joint venture partner. The design is currently under evaluation, and no formal rezoning application has been submitted yet.
The second medium-term project involves the Safeway at 8860 152 Street in Surrey, acquired in 2013 as part of a larger acquisition of 70 Safeways. The redevelopment plans for this site remain undefined, and Crombie has not yet secured necessary development entitlements.
Additionally, Crombie REIT has eight long-term projects in British Columbia, including three other Safeway redevelopments in partnership with Wesgroup: located at 3400 Kingsway, 2733 West Broadway in Vancouver, and 4440 Hastings Street in Burnaby. For these sites, the joint venture is in the early stages of concept planning and due diligence to support upcoming rezoning applications. Other long-term projects include Safeways in Port Coquitlam, New Westminster, King Edward Street in Vancouver, Robson Street in Vancouver, and Bernard Avenue in Kelowna, all of which are transit-oriented and have potential for residential expansion.

Related Posts