HALIFAX, NS,
Dec. 11, 2012 /CNW/ - Summit
Industrial Income REIT ("Summit II" or the "REIT") (TSXV: SMU.UN)
announced today that it had waived conditions and would acquire
from an arm's length party, a 142,000 square foot light industrial
property in the Greater Toronto
Area. Situated in Etobicoke,
Ontario close to Toronto's
Pearson International Airport and major highways and transportation
links, the property is 100% occupied, leased to a single national
tenant for a ten-year term that commenced on May 1, 2012. The REIT will pay approximately
$9.4 million for the property,
financed by a new $5.4 million
five-year mortgage incurring an interest rate of 3.75% with the
balance in cash from the REIT's revolving credit facility. Closing
is anticipated on or before December 31,
2012. The purchase price equates to a solid acquisition cost
of $66.00 per square foot and a
strong initial capitalization rate of 7.7%.
"This is our first purchase in the key Greater Toronto Area. Going forward, we intend
to aggressively grow our portfolio in the region focusing primarily
on accretive acquisitions of properties at values at or below
replacement cost that generate stable, consistent and increasing
cash flows," stated Paul Dykeman,
Chief Executive Officer.
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.
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 II's
property portfolio. The forward-looking statements and information
are based on certain key expectations and assumptions made by
Summit II, including general economic conditions. 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. These risks and uncertainties include, but
are not limited to, tenant risks, current economic environment,
environmental matters, general insured and uninsured risks and
Summit II 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 II undertake 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