Generates Significant Realized Gain of $0.35 per Unit
Results in Special Distribution of $0.07 per Unit
Redeploying Capital into Core Light Industrial Developments & Acquisitions
TORONTO, Sept. 11, 2019 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has sold its interests in its data centres in the Greater Toronto Area and downtown Montreal, Quebec for approximately $178 million. The transactions will generate a significant realized gain of approximately $42.0 million or $0.35 per Unit, as well as the repayment of related working capital loans and mezzanine loans of approximately $62.0 million. Closing of the sale transactions took place today.
Pursuant to its policy of declaring a Special Distribution of up to 20% of any realized gain on the sale of an interest in a property, Summit's Board of Trustees is pleased to announce a Special Distribution of $0.07 per Unit to be paid on October 2, 2019 to Unitholders of record on September 19, 2019.
Summit also announced today that it will continue to be involved in the development of one of the data centres in the Greater Toronto Areas and the data centre in downtown Montreal, Quebec, by extending new mezzanine loans to new joint ventures with Urbacon. The new joint ventures will partner with a major Canadian Institutional investor to complete the two developments. These new mezzanine loans allow Summit to participate in potential gains when these two development projects are completed and fully leased.
"We remain opportunistic in our capital deployment and recycling strategies and determined that realizing the significant gain available on the monetization of our investments in these data centres, and reducing our mezzanine loans, will provide approximately $140.0 million in new capital to direct towards our current and future development projects and our strong pipeline of future acquisition opportunities, both in our core light industrial business," commented Paul Dykeman, Chief Executive Officer. "We are also pleased to announce the new Special Distribution, a reflection of our commitment to generate enhanced value for our 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 ease 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]