TORONTO, Sept. 27, 2018 /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 262,610 square foot single tenant Class A logistics facility located in Mississauga, Ontario. The building has 24-foot clear celling height and large bay sizes with 21 truck-level doors and four drive-in doors, spacious truck courts and ample parking. It is well located within the Pearson International Airport Corporate Centre, with excellent highway and rail transportation links, and situated close to an existing Summit property providing operational efficiencies.
The property is being acquired in a sale-leaseback transaction from the owner, a private company specializing in fashion and consumer products warehousing and distribution under a ten-year lease with one five-year renewal option at market rent. Summit will pay $33.5 million or $125 per square foot (below replacement cost) for the property, financed in cash from the REIT's operating facility, generating a going-in capitalization rate of approximately 5.0%. Closing of the acquisition is expected before the end of October 2018.
"Our presence continues to grow in the Greater Toronto Area, Canada's strongest industrial property market," commented Paul Dykeman, Chief Executive Officer. "With the completion of this acquisition, approximately 62.2% of our total portfolio will now be located in the GTA."
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: please contact: Paul Dykeman, CEO at (902) 405-8813, [email protected]