TORONTO, Jan. 29, 2020 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced that it has waived conditions and will acquire 100% of the Cochrane Business Park, a six-building light industrial campus located in Markham within the Greater Toronto Area (“GTA”). The six buildings total 228,719 square feet of gross leasable area (“GLA”). Summit will pay $45.15 million for the campus, well below replacement cost, funded by its acquisition credit facility and generating a going-in capitalization rate of approximately 4.3%. Closing is expected on or before February 14, 2020.
The campus consists of four single-tenant and two multi-tenant buildings, all with 24-foot clear ceiling heights and well-located on Highway 7 with convenient access to both highway 404, highway 407, and the extensive GTA transportation network. The park is fully serviced by transit and commuter systems with ample parking for tenants. Occupancy for the portfolio is 94.4% with a diverse group of traditional warehouse and industrial users, food production, studios and service companies. No single tenant represents more than 21% of the park’s GLA. In-place rents are estimated to be approximately 50% below market, providing a solid opportunity to increase returns as leases are renewed over time. The weighted average lease term for the campus is only 2.6 years.
“We are very pleased to be acquiring this modern industrial park with a prime location in an established GTA industrial node. The buildings contain very functional, highly-leasable space and have been well maintained to an institutional standard,” commented Paul Dykeman, Chief Executive Officer. “This acquisition is an excellent example of how we are accretively building scale in the GTA, Canada’s largest and strongest industrial market.”
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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