TORONTO, June 15,
2022 /CNW/ - Summit Industrial Income REIT ("Summit"
or the "REIT") (TSX: SMU.UN) announced today that it has waived
conditions and will acquire a 174,790 square foot Class A property
portfolio, well-located in the GTA sub-market of Mississauga, Ontario. Summit will pay
$59.3 million for the portfolio,
below replacement cost, generating an accretive going-in
capitalization rate of approximately 4.9%. Closing is expected on
or before the end of June 2022. The acquisition will be
funded with cash on hand from proceeds of recent financing
activities.
The portfolio consists of a modern 104,000 square foot Class A
logistics building, with the balance consisting of Class A flex
office space situated in a prime logistics hub in the west GTA
market close to the 400 series of highways, Pearson International
Airport, and numerous commercial and retail amenities.
The logistics building has clear 28-foot ceiling heights,
thirteen loading doors, including one drive-in door, and a small
office build-out. The logistics building will be 100% leased by the
portfolio vendor, an international transportation, warehousing, and
fulfillment business, for a ten-year term with 3.5% annual rent
increases.
"This acquisition, which the REIT has been carefully considering
through its thorough due diligence process and in the context of
current market conditions, provides the REIT with highly-functional
and extremely well-located Class A properties at a very favourable
capitalization rate", commented Dayna
Gibbs, Chief Operating Officer. "With a long-term focus, the
industrial space is highly leasable, and the acquisition continues
to increase our presence in Canada's strongest industrial property
market."
About Summit Industrial Income REIT
Summit Industrial
Income REIT is an unincorporated open-end trust focused on growing
and managing a portfolio of light industrial properties in key
markets 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, and given the impact of the COVID-19
pandemic and government measures to contain it, as well as the
current geopolitical environment, there is inherently more
uncertainty associated with the REIT's assumptions as
compared to prior periods. These risks and uncertainties include,
but are not limited to, tenant risks, current economic environment,
including disputes between nations, war and international
sanctions, 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