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Empire, which holds an indirect 48.1 percent ownership interest in Crombie, said it will book a pre-tax gain of about C$165 million once the deal closes.
The properties being sold include 40 free-standing grocery stores and 21 strip malls.
Stellarton, Nova Scotia-based Empire operates grocery store chains under the brands Sobeys, IGA and Price Chopper. It employs about 40,000 people.
As part of the deal, the Sobeys chain -- Canada’s second-largest grocer -- will enter into new lease agreements with Crombie, ranging in terms from 17 to 23 years, Empire said.
Empire shares were down C$1.08 at C$35.93 on the Toronto Stock Exchange shortly after the deal was announced.
$1=$1 Canadian Reporting by Wojtek Dabrowski; editing by Rob Wilson