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TORONTO, June 17, 2016 /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 5,650,000 units at a price of $6.05 per unit for total gross proceeds of approximately $34.2 million, which includes proceeds from the partial exercise of an over-allotment option to purchase an additional 650,000 units. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets and including CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd. and Industrial Alliance Securities Inc. (collectively, the "Underwriters").
The net proceeds of the Offering will be used to repay outstanding indebtedness under Summit's revolving credit facility, following which Summit plans to draw approximately $9.4 million from the revolving credit facility to fund a portion of Summit's previously-announced purchase of an industrial property in Edmonton, Alberta (the "Edmonton Property"). The purchase price for the Edmonton Property will be approximately $33 million exclusive of transaction costs, generating a capitalization rate of approximately 6.8%. The remainder of the purchase price for the Edmonton Property is expected to be satisfied by the assumption of mortgage financing. The acquisition of the Edmonton Property is expected to close on or before June 30, 2016. The REIT plans to utilize the greater capacity on the revolving credit facility to fund future acquisitions and for 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. More particularly and without limitation, this news release contains forward looking statements and information concerning the following: the completion of the acquisition of the Edmonton Property on the terms and conditions described herein; the timing of closing of the acquisition of the Edmonton Property; and the expected benefits to the REIT of the acquisition of the Edmonton Property.
Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, Summit cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements.
Additional information about risks and uncertainties is contained in Summit's annual information form for the year ended December 31, 2015 available on SEDAR at www.sedar.com.
SOURCE Summit Industrial Income REIT
For further information: please contact: Paul Dykeman, CEO at (902) 405-8813, [email protected]