TORONTO, July 4, 2022 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has completed the acquisition of the remaining 50% interest in a newly built light industrial at Hanlon Creek Business Park in Guelph, Ontario totaling 92,050 square feet of leasable area with its joint venture partner. Summit acquired its initial 50% interest in the property in July 2021 and with occupancy stabilized at 100%, the REIT has now acquired the remaining 50% interest.
Top paid approx. $13.2 million for the remaining 50% interest in the property. When combined with Summit’s current stake in the property, Summit’s total investment is approximately $21.7 million generating a consolidated capitalization rate of approximately 4.8%. Including this new property, Summit has now developed nearly 1 million square feet of new Class A space in Hanlon Creek Business Park, representing a total investment of $165.9 million.
The property is a brand new modern Class A building adjacent to properties already owned by Summit in this newly created industrial park near Highway 401. It has a clear ceiling height of 32 feet with ample parking and parking areas. dispatch. The lease term of the building is ten years with contractual annual rental rate increases of 3.0%. The building is Leadership in Energy and Environmental Design (LEED) certified.
“This acquisition is another example of how the REIT continues to capitalize on our development program to deliver new, well-located, LEED-certified properties to our portfolio of income-producing properties,” commented Dayna Gibbs, Chief Executive Officer. “Our significant and growing presence in Guelph enables economies of scale in an attractive environment Southwestern Ontario 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 Units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit our website at www.summitIIreit.com.
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. Use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “target”, “ongoing”, “may”, “will”, “plan”, ” should”, “believe”, “plans”, “intend”, “goal” and similar expressions are intended to identify forward-looking information or statements. In particular, and without limitation, this press release contains forward-looking statements and information regarding the goal of building Summit’s real estate portfolio. 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 these forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information, as Summit cannot guarantee that they will prove to be accurate. By their nature, such forward-looking information is subject to various risks and uncertainties, which could cause actual results and expectations to differ materially from anticipated results or expectations expressed, and given the impact of the COVID-19 pandemic. 19 and government measures to contain, as well as the current geopolitical environment, there is inherently more uncertainty associated with the REIT’s assumptions compared to prior periods. These risks and uncertainties include, but are not limited to, tenant risks, the current economic environment, including disputes between nations, war and international sanctions, environmental issues, general insured and uninsured risks and Summit’s inability to obtain necessary financing and approvals. Readers are cautioned not to place undue reliance on such forward-looking information, which is given as of the date hereof, and not to use such forward-looking information for any purpose other than its intended purpose. Summit undertakes no obligation to publicly update 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
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