Summit II REIT announces filing of a preliminary short form
prospectus and property acquisitions
/NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Jan. 30, 2013 /CNW/ - Summit Industrial Income
REIT ("Summit II") (TSXV: SMU.UN) today announced that it
has filed a preliminary short form prospectus with the securities
authorities in all provinces and territories of Canada with respect to a proposed offering of
its units.
The offering is being made on an underwritten basis through a
syndicate of underwriters led by BMO Capital Markets and includes
CIBC World Markets Inc., RBC Dominion Securities Inc.,
National Bank Financial Inc., Scotia Capital Inc., TD Securities
Inc. and Canaccord Genuity Corp.
Summit II has entered into agreements in connection with five
potential acquisitions (the ''Acquisitions'') of industrial
properties (the "Acquisition Properties"). Three of the
Acquisitions are in the Greater Toronto
Area (the ''GTA''), one is in Moncton, New Brunswick, and one is in
Edmonton, Alberta. One of the
Acquisitions in the GTA is for a portfolio of eight properties in
Brampton (the "Brampton
Portfolio"). The Acquisitions will be completed pursuant to
various purchase and sale agreements between a subsidiary of Summit
II and the vendors of the various properties. None of the
Acquisitions are conditional on any of the other Acquisitions
except that the acquisition of the properties that make up the
Brampton Portfolio are conditional upon the acquisition of all, but
not less than all, of the properties that make up the Brampton
Portfolio. The aggregate purchase price (including closing costs)
for the Acquisitions is anticipated to be approximately
$177 million. The net proceeds from
the offering of units are expected to be used by Summit II, along
with cash on hand, an assumed mortgage, certain committed
mortgages, certain pending mortgages and a bridge facility from an
affiliate of BMO Capital Markets (if and to the extent required),
to fund the purchase of the Acquisition Properties. Certain of the
Acquisitions may close prior to the closing of the offering of
units or shortly thereafter and may be funded initially without
using proceeds from the offering such that the proceeds of the
offering will be used to pay down indebtedness of Summit II. In the
event that Summit II is unable to complete all of the Acquisitions,
Summit II may, in its discretion, elect to acquire less than all of
the Acquisition Properties. For more information on the Acquisition
Properties, please see the preliminary short form prospectus.
Copies of the preliminary short form prospectus relating to this
offering of units will be available from the underwriters or, under
Summit II's profile on SEDAR (www.sedar.com).
As previously announced, Summit II has completed a number of
successful transactions in recent months including the acquisition
of 501 Palladium Drive, 200 Iber Road, 240 Laurier Boulevard, 710
Neal Drive and 134 Bethridge Road. The first four properties were
acquired for $50.1 million, at a
capitalization rate of 7.9% and these properties were appraised as
part of the preparation of year-end financial statements at
$59.3 million, indicating an increase
of approximately 18%. As a result, today Summit II is announcing
that the value of its assets has grown from $12 million in September
2012 to approximately $82
million as at December 31,
2012 as a result of the transactions and the increased
appraised value of those properties.
The securities offered have not and will not be registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any U.S. State securities laws and may not
be offered or sold, directly or indirectly, within the United States or its territories or
possessions or to or for the account of any U.S. person (as defined
in Regulation S under the U.S. Securities Act) other than pursuant
to an available exemption from the registration requirements of the
U.S. Securities Act. This press release does not constitute an
offer to sell or a solicitation of an offer to buy any such
securities within the United
States, or its territories or possessions, or to or for the
account of any U.S. person.
The offering of units is expected to close by the end of
February or early March 2013 and is
subject to usual conditions.
About Summit II
Summit Industrial Income REIT is an open-ended mutual fund
trust focused on growing and managing a portfolio of light
industrial properties across Canada. Summit II's units are listed on the
TSX Venture Exchange and trade under the symbol SMU.UN.
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 proposed offering of
units, the completion of the Acquisitions and the proposed closing
of the offering. The forward-looking statements and information are
based on certain key expectations and assumptions made by Summit
II, including identifying qualified candidates. Although Summit II
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 II 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, market conditions, tenant risks, current
economic environment, environmental matters, general insured and
uninsured risks and Summit II 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 II undertake
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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Summit Industrial Income REIT