TORONTO, May 11, 2020 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today it has sold its interest in its data centre in the Greater Toronto Area. The outstanding mezzanine loan related to the project, including accrued interest, was repaid on the closing of the transaction. The transaction will generate a realized gain of approximately $21.0 million or $0.15 per Unit, with the proceeds of the gain received in stages over the ensuing eighteen months.
With the closing of the above transaction Summit will continue to have only one mezzanine loan remaining on the development of a data centre in downtown Montreal. Summit’s mezzanine loans with the joint venture partners developing these data centres allow Summit to participate in potential gains when the development projects are completed.
“The proceeds of this sale will further strengthen our financial position and liquidity, enhancing our ability to work through this challenging period resulting from the coronavirus pandemic,” commented Paul Dykeman, Chief Executive Officer.
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 ease 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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