Summit Industrial Income REIT Completes $28.8 Million Equity Offering

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TORONTO, June 5, 2014 /CNW/ - Summit Industrial Income REIT ("Summit II") (TSX: SMU.UN) announced today that it has completed its previously announced public offering (the "Offering") of 4,968,000 units at a price of $5.80 per unit for total gross proceeds of approximately $28.8, million, which includes proceeds from the full exercise of an over-allotment option to purchase an additional 648,000 units. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets and included CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Desjardins Securities Inc. and Dundee Securities Ltd. (collectively, the "Underwriters").

The net proceeds of the Offering will be used to make a mandatory repayment of outstanding indebtedness under Summit II's revolving credit facility, following which Summit II plans to draw approximately $6.5 million from the revolving credit facility to fund a portion of the purchase price for a portfolio of three light industrial single tenant properties in the GTA (the "Acquisition Properties"). The remainder of the purchase price for the Acquisition Properties is expected to be satisfied by a new 7-year mortgage with an interest rate of 3.64%. The Acquisition Properties, located in key GTA industrial sub-markets, comprise approximately 261,500 square feet of gross leaseable area and will be acquired for approximately $18.2 million, representing a going-in capitalization rate of approximately 7.45%. The price to be paid for the Acquisition Properties equates to approximately $70 per square foot, which is well below replacement cost. The Acquisition Properties are being acquired as part of a sale leaseback transaction with a major North American packaging supplier that is expected to enter into an agreement to lease the Acquisition Properties for a period of 10 years upon the closing of the transaction, which Summit II expects will occur on or about June 6, 2014.

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 Toronto Stock 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 use of the net proceeds of the Offering and the closing of the Acquisition Properties and matters related thereto. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit II. 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. 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 undertakes 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.

SOURCE: Summit Industrial Income REIT

For further information: Paul Dykeman, CEO at (902) 448-8044, pmdykeman@sigmarea.com

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www.summitiireit.com

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