TORONTO, Dec. 11, 2014 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has waived conditions and will be acquiring a 220,000 square foot single-tenant property situated on 16.3 acres of land in Mississauga. The purchase price will be approximately $22.2 million satisfied with cash from the REIT's credit facility. The acquisition price equates to a price of approximately $98.18 per square foot, and generates a going-in capitalization rate of 6.5%. The property is leased to the Ford Motor Company of Canada under a seven-year lease. Prior to the closing of the acquisition the building is undergoing approximately $3.7 million of upgrades (paid for by the tenant and the vendor). Approximately 5.2 acres of the property is excess land on which a new 100,000 square foot building could be developed in the future. The closing is expected to happen prior to December 31, 2014.
"Pursuant to our stated growth strategies, we continue to expand our presence in the Greater Toronto Area, one of the strongest industrial real estate markets in the country," commented Paul Dykeman, Summit's Chief Executive Officer. "In addition, with the completion of this acquisition, we will bring our leverage ratio closer to our 55% target."
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]