08:34 AM EDT, 04/11/2025 (MT Newswires) -- Crombie Real Estate Investment Trust (CRR-UN.TO) said Friday it agreed to sell a 50% stake in The Marlstone, a mixed-use residential rental project currently under development in Halifax, Nova Scotia, to Montez for $32.2 million.

Crombie said forming a 50/50 joint venture for the project would reduce future capital requirements, accelerate value creation, generate revenue from development services, and preserve optionality with respect to development timing and delivery.

Crombie and Montez also formed two separate joint venture partnerships to advance two key assets, Barrington Street and Brunswick Place, in Halifax, Nova Scotia. Crombie and Montez will share all costs equally.

"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," Holly added.

Crombie said it received $19.2 million in cash proceeds from the Marlstone deal, with Montez assuming $13.0 million in construction financing debt. Crombie will act as development, construction, leasing, and asset manager for the 291-unit project, earning development and management service fees.

Crombie's share price dropped 3% on Thursday to $13.75 on the TSX.