HALIFAX, NS, Dec. 11, 2012 /CNW/ - Summit Industrial Income REIT ("Summit II" or the "REIT") (TSXV: SMU.UN) announced today that it had waived conditions and would acquire from an arm's length party, a 142,000 square foot light industrial property in the Greater Toronto Area. Situated in Etobicoke, Ontario close to Toronto's Pearson International Airport and major highways and transportation links, the property is 100% occupied, leased to a single national tenant for a ten-year term that commenced on May 1, 2012. The REIT will pay approximately $9.4 million for the property, financed by a new $5.4 million five-year mortgage incurring an interest rate of 3.75% with the balance in cash from the REIT's revolving credit facility. Closing is anticipated on or before December 31, 2012. The purchase price equates to a solid acquisition cost of $66.00 per square foot and a strong initial capitalization rate of 7.7%.
"This is our first purchase in the key Greater Toronto Area. Going forward, we intend to aggressively grow our portfolio in the region focusing primarily on accretive acquisitions of properties at values at or below replacement cost that generate stable, consistent and increasing cash flows," stated Paul Dykeman, Chief Executive Officer.
About Summit II
Summit Industrial Income REIT 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 goal to build Summit II's property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit II, including general economic conditions. 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, 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 (902) 448-8044