TORONTO, Dec. 12, 2019 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has waived conditions and will acquire 100% of a 184,561 square foot single tenant light industrial property located in Markham, Ontario. The property is situated on a 11.7-acre site with low 36% site coverage, providing the opportunity to develop a 60,000 square foot addition to the property. Summit will pay approximately $39.8 million for the property, financed in cash from the REIT's operating facility, generating a going-in capitalization rate of approximately 4.2%, including the value of the expansion lands. Once the expansion to the building has been completed, the REIT expects the capitalization rate will exceed 5.0%. Closing of the acquisition is expected on January 14, 2020.
The building is an excellent Class A asset located in a prime location with excellent access to Highway 407, Highway 401, and other major transportation links. It has recently been retrofitted with new energy efficient lighting and contains clear 30-foot ceiling heights, ample parking and loading doors, and available outside storage.
The property is being acquired in a sale-leaseback transaction from the current owner who is moving to a new location. Summit intends to sign a short-term lease with the current owner and then expand the property once they move and re-lease the larger space.
"We continue to build our presence in the Greater Toronto Area, Canada's strongest industrial market," commented Paul Dykeman, Chief Executive Officer. "The expansion opportunity on this property will also generate very accretive returns for our Unitholders once completed."
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, [email protected]