HALIFAX, July 30, 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 and one fully-occupied office
building located in Pointe Claire,
Lasalle and St. Laurent in the Greater Montreal Region.
The three industrial properties total 206,612 square feet of gross
leaseable area ("GLA") with the office property adding 20,859
square feet. The REIT will pay approximately $15.3 million for the portfolio, financed by a
new $9.9 million mortgage with the
balance in cash from the REIT's revolving credit facility. Closing
is anticipated on or before October 1,
2013. The purchase price equates to a solid acquisition cost
for the industrial properties of $56.00 per square foot and a strong initial
capitalization rate of approximately 8.0%.
The industrial properties are 93% occupied by
national and strong regional tenants with a weighted average
remaining lease term of 6.8 years. The small office property is
100% occupied with a remaining lease term of 6.8 years. All of the
properties are close to highways, rail and Montreal's major airport, and there is some
expansion potential available on land within the acquired
portfolio. The acquisition significantly increases the REIT's
presence in the strong Montreal
market to a total of 308,558 square feet of GLA, or approximately
9% of the REIT's total portfolio.
"We are very pleased to be expanding our
presence in the strong and vibrant Montreal market with this high quality
property portfolio," stated Paul
Dykeman, Chief Executive Officer. "With a solid 8% initial
cap rate and attractive five-year financing, the purchase will be
immediately and significantly accretive to our Adjusted Funds from
Operations and make a solid contribution to our cash flows going
forward."
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.
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