TORONTO, March 22, 2022 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced that it has waived conditions and will acquire a 76,423 square foot Class A single tenant property in the Greater Toronto Area. Summit will pay $25.2 million for the property, well below replacement cost and generating a going-in capitalization rate of approximately 4.25%. Closing is expected on or before the end of April 2022.
The property has a prime location in an established industrial area in Vaughan, Ontario between Highway 7 and Highway 407 with excellent connectivity to 400 series highways. It consists of 64,941 square feet of functional warehouse space with a clear 22-foot ceiling height, ample loading, truck-level and drive-in doors, as well as high-quality modern office space. The property is being acquired from the current tenant, a well-regarded high-end custom store fixtures company, who will enter into a new ten-year lease with 3% annual rent increases, generating an average 4.7% capitalization rate over the term.
“We are pleased to be acquiring this well-maintained building in an attractive prime GTA industrial node below replacement cost,” commented Dayna Gibbs, Chief Operating Officer. “The space is highly leasable, and the acquisition continues to grow our presence in Canada’s strongest industrial property 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.
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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