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