Summit Industrial Income REIT completes $75.1 million equity offering

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TORONTO, Feb. 26, 2013 /CNW/ - Summit Industrial Income REIT ("Summit II") (TSXV: SMU.UN) announced today that it has completed its previously announced public offering of 11.1 million units at a price of $6.75 per unit for total gross proceeds of approximately $75.1 million (the "Offering"). The marketed offering was completed by a syndicate of underwriters led by BMO Capital Markets and included CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc. and Canaccord Genuity Corp. (collectively, the "Underwriters").

The estimated net proceeds to Summit II from the Offering, after deducting the Underwriters' fee of approximately $4.0 million, but before deducting the expenses of the Offering, were approximately $71.1 million.

Summit II has also granted the Underwriters an over-allotment option exercisable, in whole or in part, to purchase up to an additional 1.7 million units at a price of $6.75 per unit (for estimated additional aggregate gross proceeds to Summit II of $11.3 million if the over-allotment option is exercised in full) for a period of 30 days from the closing date of the Offering, to cover over-allotments, if any, and for market stabilization purposes.

The net proceeds of the Offering will be used to complete five acquisitions:  three in the Greater Toronto Area (the ''GTA''); one in Moncton, New Brunswick; and one in Edmonton, Alberta.  One of the acquisitions in the GTA is a portfolio of eight properties in Brampton. Following their completion, the new properties that make up the acquisitions will add approximately 2.0 million square feet of gross leasable area ("GLA") to Summit II's existing portfolio. The aggregate purchase price (including closing costs) for the properties is expected to be approximately $177.0 million, which, in addition to the proceeds of the Offering, will be satisfied by the assumption of existing and new mortgages totalling $106.8 million bearing an average interest rate of approximately 3.75%, with the balance to be satisfied by cash. Management expects that each of the acquisitions will close on or before the end of March 2013.

With the completion of these acquisitions, Summit II's property portfolio will consist of 25 light industrial properties aggregating 2.7 million square feet of GLA well-located in (among other areas) New Brunswick, Ontario, Manitoba, Alberta and British Columbia.

About Summit II
Summit II is an open-ended mutual fund trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit II's units are listed on the TSX Venture Exchange and trade under the symbol SMU.UN.

Caution Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "goal" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the over-allotment option and  the completion and financing of the Acquisitions  (including the receipt of any approvals and consents required to complete the Acquisitions). The forward-looking statements and information are based on certain key expectations and assumptions made by Summit II, including identifying qualified candidates. Although Summit II believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Summit II can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, market conditions, tenant risks, current economic environment, environmental matters, general insured and uninsured risks and Summit II being unable to obtain any required financing and approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward looking information for anything other than its intended purpose. Summit II undertake no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Summit Industrial Income REIT

For further information:

Paul Dykeman, CEO at [phone]
[e-mail]