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THIS PRESS RELEASE CONSTITUTES A "DESIGNATED NEWS RELEASE" FOR THE PURPOSES OF SUMMIT INDUSTRIAL INCOME REIT'S PROSPECTUS SUPPLEMENT DATED JUNE 21, 2021 TO ITS BASE SHELF PROSPECTUS DATED JUNE 21, 2021
TORONTO, Sept. 22, 2021 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has completed its previously announced public offering (the "Offering") of 6,060,500 units at a price of $20.90 per unit for total gross proceeds of approximately $126.7 million, which includes proceeds from the full exercise of an over–allotment option to purchase an additional 790,500 units. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets.
On September 15, 2021, Summit announced that it had entered into an agreement to purchase two newly-constructed logistics centres totaling 725,000 square feet of gross leasable area (the "Logistics Centre") located near Calgary, Alberta close to the Calgary International Airport. The transaction is subject to certain closing conditions and is expected to close early in the fourth quarter 2021. Summit is expected to pay $126.0 million for the Logistics Centre, financed by the proceeds from the Offering, generating a stabilized capitalization rate of approximately 4.3%.
The REIT intends to use the net proceeds from the Offering to fund the acquisition of the Logistics Centre, with the balance, if any, expected to be used for general trust purposes.
Summit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties 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. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, outlook and anticipated events or results. More particularly and without limitation, this news release contains forward-looking statements and information with respect to the following: the intention of the REIT to acquire the Logistics Centre on the terms and conditions described herein; use of the proceeds of the Offering; and Summit's plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, economic performance or expectations or the assumptions underlying any of the foregoing.
A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully as there can be no assurance actual results will be consistent with such forward-looking statements.
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, 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, 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/September2021/22/c6484.html