/NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Feb. 26, 2013 /CNW/ - Summit Industrial Income
REIT ("Summit II") (TSXV: SMU.UN) announced today that it
has completed its previously announced public offering of 11.1
million units at a price of $6.75 per
unit for total gross proceeds of approximately $75.1 million (the "Offering"). The
marketed offering was completed by a syndicate of underwriters led
by BMO Capital Markets and included CIBC World Markets Inc., RBC
Dominion Securities Inc., National Bank Financial Inc., Scotia
Capital Inc., TD Securities Inc. and Canaccord Genuity Corp.
(collectively, the "Underwriters").
The estimated net proceeds to Summit II from the
Offering, after deducting the Underwriters' fee of approximately
$4.0 million, but before deducting
the expenses of the Offering, were approximately $71.1 million.
Summit II has also granted the Underwriters an
over-allotment option exercisable, in whole or in part, to purchase
up to an additional 1.7 million units at a price of $6.75 per unit (for estimated additional
aggregate gross proceeds to Summit II of $11.3 million if the over-allotment option is
exercised in full) for a period of 30 days from the closing date of
the Offering, to cover over-allotments, if any, and for market
stabilization purposes.
The net proceeds of the Offering will be used to
complete five acquisitions: three in the Greater Toronto Area (the ''GTA''); one
in Moncton, New Brunswick; and one
in Edmonton, Alberta. One of
the acquisitions in the GTA is a portfolio of eight properties in
Brampton. Following their
completion, the new properties that make up the acquisitions will
add approximately 2.0 million square feet of gross leasable area
("GLA") to Summit II's existing portfolio. The aggregate
purchase price (including closing costs) for the properties is
expected to be approximately $177.0
million, which, in addition to the proceeds of the Offering,
will be satisfied by the assumption of existing and new mortgages
totalling $106.8 million bearing an
average interest rate of approximately 3.75%, with the balance to
be satisfied by cash. Management expects that each of the
acquisitions will close on or before the end of March 2013.
With the completion of these acquisitions,
Summit II's property portfolio will consist of 25 light industrial
properties aggregating 2.7 million square feet of GLA well-located
in (among other areas) New
Brunswick, Ontario,
Manitoba, Alberta and British
Columbia.
About Summit II
Summit II 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 over-allotment option
and the completion and financing of the Acquisitions
(including the receipt of any approvals and consents required to
complete the Acquisitions). 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