TORONTO, Sept. 17, 2018 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it is extending a $16.0 million mezzanine loan to its partner Urbacon Montreal Limited Partnership ("Urbacon") to develop a new planned 95,000 square foot data centre property ("DC2") on land owned by Urbacon directly adjacent to the existing DC1 property. Summit's mezzanine loan can be converted into a 50% ownership interest in DC2 once the property is leased and stabilized.
DC2 will be a 10 MW powered shell with a scheduled completion in six months. Urbacon has already commenced construction on the site.
"With the DC1 property now fully leased to a major global cloud provider under a long-term lease, we are being pro-active to develop new data centre capacity to serve the increasing demand in the sector," commented Paul Dykeman, Chief Executive Officer. "Looking ahead, we expect to generate higher returns on this investment than our industrial property developments, and a similar yield on cost as with DC1 once 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 protected]