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 recently constructed light industrial property in Hanlon Creek- business park in Guelph, Ontario total of 92,050 leasable square feet from its joint venture partner. Summit earned its initial 50% interest in the property in July 2021 and after occupancy stabilized at 100%, the REIT has now acquired the remaining 50% stake.
peak paid approximately $13.2 million for the remaining 50% interest in the property. Combined with Summit’s existing interest 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 at Hanlon Creek Business Park, representing a total investment of $165.9 million.
The property is a brand new, modern, Class A building adjacent to Summit-owned lots in this newly developed commercial area off Highway 401. It has 32 feet of ceiling height with ample parking and shipping areas. The lease term for the building is ten years with a contractually agreed annual rent increase 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 benefit from our development program to add brand new, well located, LEED certified buildings to our portfolio of income generating properties,” he commented Dayna Gibbs, Manager. “Our significant and growing presence in Guelph enables economies of scale in an attractive Southwestern Ontario Market.”
About Summit Industrial Income REIT
Summit Industrial Income REIT is an open-end unincorporated trust focused on growing and managing a portfolio of light industrial properties in key markets across Europe Canada. Summit’s units are listed on the TSX and trade under the symbol SMU.UN. Visit our website at www.summitIIreit.com for more information.
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”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, ” plans”, “intends”, “goal” and similar expressions are intended to identify forward-looking information or statements. Specifically, and without limitation, this press release contains forward-looking statements and information regarding Summit’s goal to build its real estate portfolio. The forward-looking statements and information are based on certain material Summit expectations and assumptions, including general economic conditions. Although Summit believes that the expectations and assumptions upon which such forward-looking statements and information are based are reasonable, you should not place undue reliance on the forward-looking statements and information, as Summit cannot guarantee that they will prove to be accurate . Such forward-looking information, by its very nature, is subject to various risks and uncertainties that could cause actual results and expectations to differ materially from those anticipated or expressed, given the impact of the COVID-19 pandemic and government efforts to contain it, and the current geopolitical environment, there is inherently more uncertainty surrounding 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 failure to obtain required financing and approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is made as of the date of this release, 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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