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TORONTO, Dec. 10, 2018 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has completed its previously announced public offering (the "Offering") of 15,055,000 units at a price of $9.30 per unit for total gross proceeds of approximately $140 million, which includes proceeds from the partial exercise of an over‑allotment option to purchase an additional 1,605,000 units. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets.
The REIT intends to use the net proceeds from the Offering and cash from the REIT's credit lines, along with assumed mortgages previously disclosed, primarily for the funding of the acquisition of eleven light industrial properties located in Montreal, the Greater Toronto Area and Ottawa (the "Acquisition Properties"). The Acquisition Properties are each located in key target markets, and total approximately 2.1 million square feet of gross leasable area for a total purchase price of approximately $231.5 million. The balance of the proceeds from the Offering, if any, is expected to be used for the repayment of debt, which may be subsequently redrawn and applied as needed for funding of future acquisitions, and general trust purposes.
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. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, outlook and anticipated events or results. Some of the specific forward-looking statements contained herein include statements with respect to the following: the intention of the REIT to acquire the Acquisition Properties and the use of the proceeds of the Offering.
A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully as there can be no assurance actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
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 protected]