TORONTO, Feb. 5, 2019 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has replaced previously-arranged bridge loans used to complete recent acquisitions with permanent long-term fixed rate mortgage financing.
A $91 million twelve-month bridge loan arranged to complete the acquisition of a Montreal property portfolio in December 2018 has now been refinanced with new ten-year mortgages bearing an interest rate of 3.93%. A second $62 million bridge loan used to purchase an Alberta property portfolio in December 2018 has now been refinanced with new ten-year mortgages bearing an interest rate of 3.86%. With the new financings, the weighted average term to maturity for the total mortgage portfolio has increased from 4.8 years to 5.9 years.
"We are pleased to proactively refinance these bridge loans that were not due to expire until December 2019," commented Paul Dykeman, Chief Executive Officer. "We continue to take advantage of the current, very attractive ten-year bond rates to lock in low-cost long-term financing and extend the term to maturity of our mortgage portfolio, further underpinning the predictability and sustainability of our cash distributions to Unitholders."
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]