TORONTO, June 19, 2018 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that the tenant at its Data Centre One ("DC1") has exercised its option to expand into the remaining 60,000 square feet of the 120,000 square foot building on the same terms and conditions under its existing lease.
Summit owns a 50% interest in DC1, located in the Barker Business Park Digital Campus in Richmond Hill, Ontario, in partnership with Urbacon Montreal Limited Partnership ("Urbacon"). DC1 is a brand new, purpose-built, state-of-the-art 10 MW data centre designated as Tier IV, the highest standard within the industry.
"This new lease expansion and extension bring significant benefits to Summit," commented Paul Dykeman, Chief Executive Officer. "Once DC1 is fully occupied, the new lease will make a significant and growing contribution to our Funds from Operations and increase our Net Asset Value. With the necessary investments made to accommodate the lease expansion, we estimate the yield on cost will rise to over 10% when the building is fully stabilized."
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@example.com
Summit II is an open-ended mutual fund trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit II'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.