TORONTO, May 10, 2021 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it continues to expand its pipeline of development projects in the Greater Toronto Area (“GTA”) with the acquisition of interests in four development sites totaling close to 50 acres with the potential to add almost 1 million square feet of new gross leasable area (“GLA”) to its portfolio.
The REIT has waived conditions and will acquire a 12.7-acre development site on South Service Road in Burlington, Ontario for $27.4 million. The site, which has the potential to build a 244,000 square foot light industrial building, is located in a prime industrial node with direct exposure to The Queen Elizabeth Way (“QEW”) offering attractive sightlines for potential tenant signage. Closing is expected in June 2021.
The REIT has also entered into a conditional agreement to acquire from its joint venture partner, a 50% interest in two land parcels in the Hanlon Creek Business Park in Guelph, Ontario minutes from Highway 401. These two parcels contain a total of 16.4 usable acres with the potential to construct two buildings having a total GLA of 300,000 square feet. Summit will acquire its 50% interest in the two parcels for $4.6 million, with closing anticipated in June 2021. Summit expects to acquire the remaining 50% interest in these projects upon completion.
- These two parcels complement Summit’s existing investments in the Hanlon Creek Business Park. Summit currently owns four brand-new Class A buildings in the Park and is constructing two others with its joint venture partner, aggregating approximately 1.3 million square feet of GLA, all of which is fully leased.
In addition, the REIT has entered into a conditional agreement with its joint venture partner, to acquire a 50% interest in a 19.5-acre site on 425 Bingemans Centre Drive in Kitchener, Ontario, in close proximity to existing transportation infrastructure and the future Highway 7 realignment. The property has the potential to develop between 350,000 and 400,000 square feet of GLA. Summit will pay approximately $5.6 million for its 50% interest, with closing expected in the fourth quarter of 2021. Summit also expects to acquire the remaining 50% interest in this project once complete.
“With the completion of these transactions, we continue to expand our total development pipeline to 90 acres and the potential to add 1.8 million square feet of brand new well-located GTA properties to our portfolio in the near future” commented Dayna Gibbs, Chief Operating Officer. “Given the significant demand and strong fundamentals in these markets, the new development projects will add another source of accretive growth to our portfolio, while enhancing our ESG initiatives for sustainable development.”
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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