TORONTO, March 31, 2021 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has agreed to sell three properties totaling 283,495 square feet located in Ottawa, Ontario. The sale price will be $49.2 million, above the December 31, 2020 IFRS value for the properties. The properties are free and clear of debt. The sale proceeds will be used to reduce the REIT’s unsecured revolving credit facility and for future acquisitions. The properties were identified by the REIT for disposition as they were considered non-core assets and encompass approximately sixty tenants. Closing of the disposition is expected before the end of April 2021.
“These properties are an excellent example of how we are able to achieve value enhancement through active property management thereby improving occupancies and increasing average monthly rents,” commented Dayna Gibbs, Chief Operating Officer. “We believe we have maximized value on these non-core, management intensive, multi-tenant properties and intend to deploy the sale proceeds in more accretive growth opportunities in our key Greater Toronto Area and Montreal target markets.”
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 and given the impact of the COVID-19 pandemic and government measures to contain it, 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, 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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