Earlier this week, Nova Scotia-based Crombie REIT (TSX: CRR.UN) published its Q1 2025 financial results, simultaneously announcing that they have entered into four new partnerships with Vancouver-based real estate developer Wesgroup Properties subsequent to the quarter.
The partnerships pertain to four properties that were already owned by Crombie REIT, located in Vancouver, North Vancouver, and Burnaby.
All four projects are in early planning stages, with Crombie REIT saying that the partnership with Wesgroup will be "providing a path to unlock embedded value within its development pipeline" and "advancing these projects through the entitlement, design, and approval process."
The four partnerships are as follows.
Kingsway & Tyne
Wesgroup has acquired a 50% stake in the Kingsway & Tyne project from Empire Company Limited, the parent company of Sobeys that is also Crombie REIT's largest unitholder — 41.5% as of February 1, 2025.
The project is set for 3400 Kingsway (also known as 3410 Kingsway) in East Vancouver, a few blocks away from Boundary Road and Central Park. The 3.74-acre site is bounded by Kingsway, Tyne Street, School Avenue, and Senlac Street.
The site consists of three legal parcels that BC Assessment values at $75,533,000, $5,738,300, and $3,471,600, for a total assessed value — dated to July 1, 2024 — of $87,742,900. The parcels are currently occupied by a Safeway, a standalone BC Liquor Store, and a large surface parking lot. (Safeway Canada is also a subsidiary of Empire.)
Crombie's Q1 2025 report stated that, "The joint venture is currently working through early concept planning and due diligence to support a rezoning application."
Lynn Valley
Wesgroup has also acquired a 50% stake in the Lynn Valley project from Empire Company Limited.
The project is set for 1170 E 27th Avenue in North Vancouver, which is located directly to the west of the Lynn Valley Centre shopping mall (owned by Bosa Development). The 2.82-acre site is bounded by surface parking on the north, the Lynn Valley Centre on the east, E 27th Street on the south, and a residential building on the west.
BC Assessment values the property at $46,924,000 and the site is also currently occupied by a Safeway and surface parking.
Of the four projects, this is the only one where a development proposal has been made, with Crombie REIT previously submitting a preliminary application in November 2021. The proposal was for four residential buildings between nine and 12 storeys, with a total of 479 residential units and a new replacement supermarket, but the project has not advanced since Council provided early input in August 2023. Crombie's Q1 2025 report stated that "The joint venture is evaluating the project design to ensure the proposal satisfies new municipal and provincial policies prior to submitting a formal zoning application."
The preliminary proposal for the Lynn Valley Safeway at 1170 E 27th Street in North Vancouver. / Arcadis
Hastings
Crombie REIT is also partnering with Wesgroup to further the development entitlement of its Hastings Safeway site.
The project is set for 4440 Hastings Street and 4454 Hastings Street in the Burnaby Heights neighbourhood of Burnaby. The 3.30-acre site is bounded by Hastings Street on the north, a vacant lot owned by a different party and Willingdon Avenue on the east, Pender Street on the south, and Rosser Avenue on the west.
BC Assessment values the parcels at $64,029,000 and $2,709,000, for a total assessed value of $66,738,000. The first parcel is occupied by a Safeway and its surface parking lot, while the second parcel is occupied by a small standalone commercial building currently occupied by BMO.
West Broadway
Crombie REIT is also partnering with Wesgroup to further the development entitlement of its West Broadway Safeway site.
The project is set for 2733 W Broadway and 2490 MacDonald Street in Vancouver, located a few blocks away from Kitsilano Secondary School. The 1.95-acre site is bounded by W 8th Avenue on the north, Stephens Street on the east, West Broadway on the south, and MacDonald Street on the west.
BC Assessment values the parcels at $60,464,000 and $7,589,000, for a total assessed value of $68,053,000. The first parcel is occupied by a Safeway and a surface parking lot, while the second is occupied by a small standalone commercial building currently occupied by RBC.
Wesgroup and Safeway Redevelopments in Metro Vancouver
It's unclear if Wesgroup has acquired an ownership stake in the Hastings and West Broadway sites, but the arrangement could be similar to Wesgroup's partnership with Choice Properties REIT (TSX: CHP.UN) in Coquitlam, where they are working together to secure entitlements before Wesgroup later acquires a stake. STOREYS has reached out to Wesgroup for clarification.
The project with Choice Properties is called the North Road Master Plan, with master-planned communities being a speciality for Wesgroup, who are also working on the River District in Vancouver, Civic District in Surrey, Brewery District in New Westminster, and Inlet District in Port Moody.
The four new partnerships between Wesgroup and Crombie REIT also add to a growing list of Safeway redevelopments in Metro Vancouver.
The biggest of them all, of course, is the three-tower Commercial-Broadway Safeway redevelopment by Crombie REIT and Westbank, which is up for a public hearing next week. Also in Vancouver, BGO is undertaking a two-tower redevelopment of the West Point Grey Safeway, which was granted approval in March. Not too far from the West Broadway Safeway, PCI Developments and Low Tide Properties are undertaking a mid-rise redevelopment of the Kitsilano Safeway, which was approved by Vancouver's Development Permit Board last month.
