/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 11, 2017 /CNW/ - Summit Industrial Income REIT ("Summit") (TSX: SMU.UN) announced today that it has waived conditions and will acquire a previously disclosed 100% interest in a ten property portfolio (the "Portfolio") for a purchase price of approximately $72.0 million. The Portfolio is primarily located in the GTA, and is comprised of nine single-tenant properties and one multi-tenant property. Eight properties comprising 553,556 square feet of GLA are located next to major transportation routes in the GTA. Two properties comprising 184,880 square feet of GLA are located in Ottawa and Montreal. The Portfolio comprises 738,436 square feet of GLA and is 100% occupied, with a weighted average lease term of approximately 4.0 years with an average rental rate of $5.25 per square foot. The purchase price for the Portfolio represents a going-in capitalization rate of approximately 5.4% and a discount to replacement cost. Closing is expected on or before December 31, 2017.
The purchase price for the Portfolio is expected to be satisfied, in part, from the proceeds of a previously-announced public offering (the "Offering") of Summit's units at a price of $7.20 per unit, which is expected to close on December 13, 2017.
Summit also announced today that the underwriters – led by BMO Capital Markets (the "Underwriters") – have exercised in full their over-allotment option to purchase an additional 1,875,000 units pursuant to the Offering. The full exercise of the over-allotment option will result in an additional $13.5 million of gross proceeds of the Offering, bringing the total gross proceeds from the Offering to approximately $103.5 million from the sale of 14,375,000 units.
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 Portfolio on the terms and conditions described herein; the intention of the REIT to complete the Offering on the terms and conditions described herein; the date on which the closing of the Offering is expected to occur; and the use of the proceeds of the Offering.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. 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: please contact: Paul Dykeman, CEO at (902) 405-8813, [email protected]