TORONTO, Sept. 28, 2020 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has waived all closing conditions and will acquire 100% of a 244,633 square foot Class A single tenant warehousing and logistics facility in Vaughan, Ontario, a prime new industrial property node in the Greater Toronto Area (“GTA”). Summit will pay $47.3 million for the property, well below replacement cost, financed by cash from the REIT’s unsecured revolving credit facility and generating a going-in capitalization rate of approximately 4.5%. Closing is anticipated on or before October 13, 2020.
The property, located at 123 Great Gulf Drive in Vaughan, is well situated near major highway and railway transportation links and is in close proximity to other Summit properties. Built in 2003 and expanded in 2013, the building is modern and well maintained with clear ceiling heights ranging from 24 feet to 32 feet. The transaction is structured as a sale-leaseback with the existing owner, a North American industry leader in wholesale efficiency and strategic merchandising. The fifteen-year lease will include 2% annual rent escalations.
“We continue to successfully grow our presence in the GTA, Canada’s strongest light industrial property market, with the announcement of the acquisition of this modern, highly leasable property in a prime location,” commented Paul Dykeman, Chief Executive Officer.
The REIT also announced today that it has sold a non-core 41,487 square foot property located at 16295 132nd Avenue in Edmonton, Alberta for net proceeds of $2.0 million. The transaction closed on September 25, 2020.
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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