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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% ownership interest in a recently constructed light industrial property in the Hanlon Creek Business Park in Guelph, Ontario totaling 92,050 square feet of leasable area from 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.
Summit paid approximately $13.2 million for the remaining 50% interest in the property. When combined with Summit's existing ownership 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 close to 1 million square feet of new Class A space in the 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 32-foot clear ceiling height with ample parking and shipping areas. The lease term for 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 brand new, well-located, LEED-certified buildings to our portfolio of income producing properties," commented Dayna Gibbs, Chief Operating Officer. "Our substantial and growing presence in Guelph allows for economies of scale in an attractive Southwestern Ontario market."
About Summit Industrial Income REIT
Summit Industrial Income REIT is an unincorporated open-ended 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
View original content: http://www.newswire.ca/en/releases/archive/July2022/04/c5875.html