HALIFAX, July 9, 2013 /CNW/ - Summit Industrial Income REIT ("Summit II" or the "REIT") (TSXV: SMU.UN) announced today that it had waived conditions and would acquire a portfolio of three light industrial properties located in Brampton and Barrie, Ontario, and Laval, Quebec aggregating 446,379 square feet of gross leaseable area ("GLA"). The REIT will pay approximately $37.4 million for the portfolio, financed by the assumption of an existing $5.4 million mortgage, a new $16.4 million mortgage, and the balance in cash from the REIT's revolving credit facility. Closing is anticipated to occur on or before August 31, 2013. The purchase price equates to a solid acquisition cost of $83.67 per square foot and a strong initial capitalization rate of 6.9%. Details about the properties to be acquired are shown in the table below.
The new Brampton property will significantly grow the REIT's presence and critical mass in the city to a total of approximately 1.3 million square feet of GLA. All of the new acquisitions are close to highways, rail or other major transportation links, and all are 100% occupied by single credit-worthy national tenants. The Veterans Drive property and the Walker Drive Property have expansion capabilities of 50,000 square feet and 43,500 square feet respectively.
"We are pleased to be strengthening our presence in the Greater Toronto and Montreal regions, and entering the very strong Barrie market," stated Paul Dykeman, Chief Executive Officer. "With a solid 6.9% initial cap rate, the purchase will be immediately accretive to our Adjusted Funds from Operations and make a solid contribution to our cash flows going forward."
term (Aug. 1, 2013)
|500 Veterans Drive||Barrie||216,460||2004||28||5.62 Years|
|110 Walker Drive||Brampton||148,832||1981/1987*||20||2.42 Years|
|175 Bellerose Blvd.||Laval||81,087||2007||28||4.17 Years|
|*Roof was replaced at 110 Walker in 2009|
About Summit II
Summit Industrial Income REIT is an open-ended mutual fund trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit II's units are listed on the TSX Venture Exchange 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. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit II. Although Summit II 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 II 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. 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 II 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Summit Industrial Income REIT