/NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Feb. 14, 2013 /CNW/ - Summit Industrial Income
REIT ("Summit II") (TSXV: SMU.UN) announced today that it
has, in connection with its previously announced marketed public
offering, entered into an underwriting agreement (the
"Underwriting Agreement") with a syndicate of underwriters
led by BMO Capital Markets which includes CIBC World Markets Inc.,
RBC Dominion Securities Inc., National Bank Financial Inc.,
Scotia Capital Inc., TD Securities Inc. and Canaccord Genuity Corp.
(collectively, the "Underwriters") to sell 11,120,000 units
of Summit II (the "Units") at price of $6.75 per Unit for gross proceeds of $75,060,000 (the "Offering").
Summit II has also granted the Underwriters an
over-allotment option exercisable, in whole or in part, to purchase
up to an additional 1,668,000 Units at a price of $6.75 per unit (for estimated additional
aggregate gross proceeds to Summit II of $11,259,000 if the over-allotment option is
exercised in full) for a period of 30 days from the closing date of
the Offering, to cover over-allotments, if any, and for market
stabilization purposes.
Summit II has filed a final short form
prospectus dated February 13, 2013
with securities authorities in all provinces and territories of
Canada (the "Prospectus").
A copy is available under Summit II's profile on SEDAR at
www.sedar.com, once a receipt for the final short form prospectus
has been issued.
The Offering is scheduled to close on or about
February 26, 2013 and is subject to
standard closing conditions, as provided in the Underwriting
Agreement, including approval by the TSX Venture Exchange.
As previously disclosed, Summit II has entered
into agreements in connection with five potential acquisitions (the
''Acquisitions'') of industrial properties (the
"Acquisition Properties"). Three of the Acquisitions are in
the Greater Toronto Area (the
''GTA''), one is in Moncton, New
Brunswick, and one is in Edmonton,
Alberta. One of the Acquisitions in the GTA is for a
portfolio of eight properties in Brampton (the "Brampton Portfolio").
The Acquisitions will be completed pursuant to various purchase and
sale agreements between a subsidiary of Summit II and the vendors
of the various properties. None of the Acquisitions are conditional
on any of the other Acquisitions except that the acquisition of the
properties that make up the Brampton Portfolio are conditional upon
the acquisition of all, but not less than all, of the properties
that make up the Brampton Portfolio. The aggregate purchase price
(including closing costs) for the Acquisitions is anticipated to be
approximately $177 million. The net
proceeds from the Offering are expected to be used by Summit II,
along with cash on hand, an assumed mortgage, certain committed
mortgages, certain pending mortgages and a bridge facility from an
affiliate of BMO Capital Markets (if and to the extent required),
to fund the purchase of the Acquisition Properties. Certain of the
Acquisitions may close prior to the closing of the Offering
or shortly thereafter and may be funded initially without using
proceeds from the Offering such that the proceeds of the Offering
will be used to pay down indebtedness of Summit II. In the event
that Summit II is unable to complete all of the Acquisitions,
Summit II may, in its discretion, elect to acquire less than all of
the Acquisition Properties. For more information on the Acquisition
Properties, please see the final short form prospectus available on
SEDAR at www.sedar.com.
The securities offered have not and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any U.S. State
securities laws and may not be offered or sold, directly or
indirectly, within the United
States or its territories or possessions other than pursuant
to an available exemption from the registration requirements of the
U.S. Securities Act. This press release does not constitute an
offer to sell or a solicitation of an offer to buy any such
securities within the United
States, or its territories or possessions, or to or for the
account of any U.S. person.
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 closing of the Offering ,
the completion and financing of the Acquisitions (including
the receipt of any approvals and consents required to complete the
Acquisitions). The forward-looking statements and information are
based on certain key expectations and assumptions made by Summit
II, including identifying qualified candidates. 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, market conditions, 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