TORONTO, Feb. 5, 2019 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has waived conditions and will acquire 100% of a 236,134 square foot single tenant logistics facility located in Montreal, Quebec. The property is situated on a 16.5-acre site in a prime location with excellent exposure to the Trans-Canada Highway and other transportation links. It is also situated close to other existing Summit properties providing operational efficiencies. The property offers the potential for re-development to add additional square footage over time.
The property is being acquired in a sale-leaseback transaction from the owner, a private Montreal company specializing in furniture design, manufacturing and distribution under a new ten-year lease with 2.0% contractual annual rent increases. Summit will pay $23.0 million for the property, financed in cash from the REIT’s operating facility, generating a going-in capitalization rate of approximately 5.6%. Closing of the acquisition is expected in early March 2019.
“We are pleased to expand our presence in Montreal, one of Canada’s strongest industrial markets,” commented Paul Dykeman, Chief Executive Officer. “The re-development opportunity on this property will also generate very accretive returns for our Unitholders over the longer term.”
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. 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. These risks and uncertainties include, but are not limited to, tenant risks, current economic environment, 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
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