TORONTO, July 4, 2022
/CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT")
(TSX: SMU.UN) announced today that it has completed the acquisition
of the remaining 50% ownership interest in a recently constructed
light industrial property in the Hanlon Creek Business Park in
Guelph, Ontario totaling 92,050
square feet of leasable area from its joint-venture partner. Summit
acquired its initial 50% interest in the property in July 2021 and with occupancy stabilized at 100%,
the REIT has now acquired the remaining 50% interest.
Summit paid approximately $13.2
million for the remaining 50% interest in the property. When
combined with Summit's existing ownership interest in the property,
Summit's total investment is approximately $21.7 million generating a consolidated
capitalization rate of approximately 4.8%. Including this new
property, Summit has now developed close to 1 million square feet
of new Class A space in the Hanlon Creek Business Park,
representing a total investment of $165.9
million.
The property is a brand new, modern Class A building adjacent to
properties already owned by Summit in
this newly-created industrial park near Highway
401. It has a 32-foot clear ceiling height with ample parking and
shipping areas. The lease term for the building is ten years with
contractual annual rental rate increases of 3.0%. The
building is Leadership in Energy and Environmental Design (LEED)
certified.
"This acquisition is another example of how the REIT continues
to capitalize on our development program to deliver brand new,
well-located, LEED-certified buildings to our portfolio of income
producing properties," commented Dayna
Gibbs, Chief Operating Officer. "Our substantial and growing
presence in Guelph allows for
economies of scale in an attractive Southwestern Ontario market."
About Summit Industrial Income REIT
Summit Industrial Income REIT is an unincorporated open-ended
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