/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 11, 2017 /CNW/ - Summit Industrial Income
REIT ("Summit") (TSX: SMU.UN) announced today that it has waived
conditions and will acquire a previously disclosed 100% interest in
a ten property portfolio (the "Portfolio") for a purchase price of
approximately $72.0 million. The
Portfolio is primarily located in the GTA, and is comprised of nine
single-tenant properties and one multi-tenant property. Eight
properties comprising 553,556 square feet of GLA are located next
to major transportation routes in the GTA. Two properties
comprising 184,880 square feet of GLA are located in Ottawa and Montreal. The Portfolio comprises 738,436
square feet of GLA and is 100% occupied, with a weighted average
lease term of approximately 4.0 years with an average rental rate
of $5.25 per square foot. The
purchase price for the Portfolio represents a going-in
capitalization rate of approximately 5.4% and a discount to
replacement cost. Closing is expected on or before December 31, 2017.
The purchase price for the Portfolio is expected to be
satisfied, in part, from the proceeds of a previously-announced
public offering (the "Offering") of Summit's units at a price of
$7.20 per unit, which is expected to
close on December 13, 2017.
Summit also announced today that the underwriters – led by BMO
Capital Markets (the "Underwriters") – have exercised in full their
over-allotment option to purchase an additional 1,875,000 units
pursuant to the Offering. The full exercise of the over-allotment
option will result in an additional $13.5
million of gross proceeds of the Offering, bringing the
total gross proceeds from the Offering to approximately
$103.5 million from the sale of
14,375,000 units.
About Summit
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. Forward-looking
information may relate to future results, performance,
achievements, events, prospects or opportunities for the REIT or
the real estate industry, outlook and anticipated events or
results. Some of the specific forward-looking statements contained
herein include statements with respect to the following: the
intention of the REIT to acquire the Portfolio on the terms and
conditions described herein; the intention of the REIT to complete
the Offering on the terms and conditions described herein; the date
on which the closing of the Offering is expected to occur; and the
use of the proceeds of the Offering.
Forward-looking statements necessarily involve known and unknown
risks and uncertainties, which may be general or specific and which
give rise to the possibility that expectations, forecasts,
predictions, projections or conclusions will not prove to be
accurate, assumptions may not be correct and objectives, strategic
goals and priorities may not be achieved. A variety of factors,
many of which are beyond the REIT's control, affect the operations,
performance and results of the REIT and its business, and could
cause actual results to differ materially from current expectations
of estimated or anticipated events or results. These factors
include, but are not limited to, the risks discussed in the REIT's
materials filed with Canadian securities regulatory authorities
from time to time on www.sedar.com. Readers are cautioned to
consider these and other factors, uncertainties and potential
events carefully as there can be no assurance actual results will
be consistent with such forward-looking statements.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in drawing a
conclusion or making a forecast or projection. While management
considers these assumptions to be reasonable based on currently
available information, they may prove to be incorrect.
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