Summit Industrial Income REIT to Acquire Class A GTA Property Portfolio

TORONTO, June 15, 2022 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has waived conditions and will acquire a 174,790 square foot Class A property portfolio, well-located in the GTA sub-market of Mississauga, Ontario. Summit will pay $59.3 million for the portfolio, below replacement cost, generating an accretive going-in capitalization rate of approximately 4.9%. Closing is expected on or before the end of June 2022.  The acquisition will be funded with cash on hand from proceeds of recent financing activities.

The portfolio consists of a modern 104,000 square foot Class A logistics building, with the balance consisting of Class A flex office space situated in a prime logistics hub in the west GTA market close to the 400 series of highways, Pearson International Airport, and numerous commercial and retail amenities.

The logistics building has clear 28-foot ceiling heights, thirteen loading doors, including one drive-in door, and a small office build-out. The logistics building will be 100% leased by the portfolio vendor, an international transportation, warehousing, and fulfillment business, for a ten-year term with 3.5% annual rent increases. 

"This acquisition, which the REIT has been carefully considering through its thorough due diligence process and in the context of current market conditions, provides the REIT with highly-functional and extremely well-located Class A properties at a very favourable capitalization rate", commented Dayna Gibbs, Chief Operating Officer. "With a long-term focus, the industrial space is highly leasable, and the acquisition continues to increase our presence in Canada's strongest industrial property market."

About Summit Industrial Income REIT
Summit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties in key markets across Canada. Summit's units are listed on the TSX 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. More particularly and without limitation, this news release contains forward looking statements and information concerning the goal to build Summit's property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit 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 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, and given the impact of the COVID-19 pandemic and government measures to contain it, as well as the current geopolitical environment, there is inherently more uncertainty associated with the REIT's assumptions as compared to prior periods. These risks and uncertainties include, but are not limited to, tenant risks, current economic environment, including disputes between nations, war and international sanctions, environmental matters, general insured and uninsured risks and Summit 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 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.

SOURCE Summit Industrial Income REIT