TORONTO, May 6, 2014 /CNW/ - Summit Industrial Income REIT ("Summit II"
or the "REIT") (TSX: SMU.UN) announced today that it will be selling
75% of its interest in its light industrial property at 501 Palladium
Drive in Ottawa to a major Canadian institution. The REIT will receive
approximately $25.3 million in proceeds for the sale and record a
realized gain on the sale of approximately $4.9 million. The proceeds
of the sale will be used to reduce the REIT's line of credit and
exposure to floating interest rates. The sale is expected to close on
or before May 7, 2014.
The REIT recently arranged for two new leases on the property with
credit-worthy tenants to replace a single tenant that had occupied only
the office portion of the property. The new tenants have rights to
occupy the remaining vacant space.
"This transaction creates a number of benefits for our Unitholders,"
commented Paul Dykeman, Chief Executive Officer. "After significantly
enhancing the value of the property through the efforts of our proven
and experienced leasing team, we have crystallized a solid gain on the
sale and reduced our floating rate debt exposure. We anticipate this
new co-venture will acquire future properties together and increase the
size and scale of our portfolio."
About Summit II
Summit Industrial Income REIT is an unincorporated open-end trust
focused on growing and managing a portfolio of light industrial
properties across Canada. Summit II'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. 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) 405-8813