TORONTO, March 28, 2017 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today it has waived conditions and will be acquiring 100% of a 138,418 square foot Class A light industrial property located in Sherbrooke, Quebec. The building is a brand new, design-build property completed in 2017 with clear 28 foot ceiling heights located on major transportation links only 30 minutes from the United States border. The property will be acquired for $14.8 million in cash from the REIT's credit line, generating a strong going-in capitalization rate of 6.5%. The building is 100% leased for a ten-year term to a single tenant with a strong AAA credit rating. The property has the potential for future expansion based on tenant demand. Closing is expected on or before April 15, 2017.
"With its close proximity to major Northeastern markets in the United States, Sherbrooke has become a major distribution hub for businesses exporting to the U.S.," commented Paul Dykeman, Chief Executive Officer. "Our credit worthy tenant has been operating in the region for decades, and we look forward to assisting in their growth by expanding the building in the future."
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, firstname.lastname@example.org