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."
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Address |
|
Location |
GLA |
|
Built/
Expanded |
|
Ceiling
Height |
|
Remaining lease
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 |
Portfolio |
|
|
446,379 |
|
|
|
|
|
4.29 Years |
*Roof was replaced at 110 Walker in
2009 |
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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