TORONTO, Oct. 31, 2019 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it had waived conditions and will acquire 100% of a Class A light industrial property totaling 128,235 square feet located in Vaughan, Ontario in the Greater Toronto Area. Summit will pay $25.5 million for the property, well below replacement cost, funded by the assumption of a $10.6 million mortgage with a 3.88% interest rate maturing in March 2023 and cash from its recently completed bought-deal equity offering. Closing is anticipated on or before the end of November 2019.
The building was constructed in 2003 and includes 28-foot clear ceiling heights. It sits on eight acres of land with a site coverage of only 37%, thus permitting outside storage and ample parking. The property is occupied by a single light industrial tenant in the last four years of a 10-year lease. Management believes the rent being paid is well-below market and anticipates a significant increase when the lease expires, and rents are brought more in line with the GTA market.
"We continue to expand our presence in the strong Greater Toronto Area, our main target market, through accretive property purchases and our value enhancing development programs," commented Paul Dykeman, Chief Executive Officer.
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: For More Information, please contact: Paul Dykeman, CEO at (902) 405-8813, [email protected]