TORONTO, May 26, 2015 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has waived conditions and will acquire a 184,000 square foot, multi-tenant industrial property located at 2333 North Sheridan Way in Mississauga, Ontario. The acquisition price of $14.5 million will be satisfied by the assumption of an $8.9 million mortgage bearing an interest rate of 3.72% maturing in September 2019, with the balance in cash from the REIT's operating credit facility. The purchase price equates to a cost of approximately $78.54 per square foot, well below replacement cost, and generates a very strong going-in capitalization rate of approximately 7.2%. The property, located close to major highway and rail transportation links, is 100% occupied with a weighted average lease term of 4.6 years. Closing of the transaction is expected on or before June 11, 2015.
"We continue to build our presence in the strong and growing Greater Toronto Area industrial market with the purchase of this high quality property," commented Paul Dykeman, Summit's Chief Executive Officer. "With the closing of this acquisition, our target GTA and Montreal markets will represent approximately 86.1% of our total portfolio, and we look to continue expanding in these vibrant regions going forward."
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 goal to build Summit's property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit 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 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 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 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, firstname.lastname@example.org