TORONTO, April 30, 2015 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has sold a 75% interest in two properties located in Ottawa, Ontario and Moncton, New Brunswick aggregating 245,217 square feet of gross leasable area (GLA). The sale price of approximately $24.9 million for the 75% interest will generate a realized gain on the sale of approximately $2.3 million. The proceeds will be used to reduce the REIT's floating-rate revolving operating credit facility and provide funds for future portfolio growth. The purchaser is the same major Canadian financial institutions that purchased a 75% interest in another Summit property in Ottawa in May 2014.
"With full occupancies and continued very strong performance at the property level, our focus is now on significantly accelerating growth in our property portfolio to enhance its size and scale and deliver increased cash flow to our Unitholders," commented Paul Dykeman, Summit's Chief Executive Officer. "A key element of our growth program is to partner on selected assets and recycle this capital in acquisitions that build our presence in targeted higher-growth industrial markets, including the Greater Toronto Area. We look to accretively reinvest the proceeds from these two sales in the near term."
Summit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit our web site at www.summitIIreit.com.
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 goal to build Summit's property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit 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 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, tenant risks, current economic environment, environmental matters, general insured and uninsured risks and Summit 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 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) 405-8813, email@example.com