Summit Industrial Income REIT Announces Acquisition of Montreal Industrial Property and Net Zero Carbon Expansion Project
TORONTO, Feb. 23, 2022 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has waived conditions and will acquire a 226,000 square foot industrial building combined with a 150,000 square foot industrial expansion project in Pointe Claire, Quebec on the west side of Montreal. Summit will pay $95.6 million for the entire property, of which, $39.0 million will be paid once the expansion project is completed to the REIT’s satisfaction.
The property is well-located directly on the Trans-Canada Highway, provides excellent access to the GMA’s primary transit network, is ideally positioned for efficient access to the Montreal-Trudeau International Airport and is in close proximity to other Summit-owned properties. The area benefits from access to a large, diversified and skilled labour pool to be serviced by future Montreal light-rail transit stations. The existing 226,000 square foot building has 22-foot clear ceiling heights, ample access doors as well as trailer and employee parking. The 150,000 square foot Class A expansion project, with an estimated completion date of mid-2022, will have 32-foot clear ceiling heights, 22 truck level doors and two large drive-in doors. Numerous green initiatives are being provided for in the expansion project and it is intended to be certified as a net zero carbon building on completion.
The property is being acquired under a long-term sale-leaseback structure with the current owner occupying 100% of the existing building. Negotiations are at an advanced stage to lease the expansion space to one tenant under a long-term lease. The going-in capitalization rate for the acquisition is approximately 4.5%.
“We are excited to continue to grow our presence in the Greater Montreal Area, Canada’s second largest and one of the country’s most vibrant and growing industrial markets,” commented Dayna Gibbs, Chief Operating Officer. “The property’s prime location and scale fit our growth criteria, and the potential net zero carbon designation for the expansion property aligns with the REIT’s commitment to sustainability and environmental efficiencies within our portfolio.”
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. 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, 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
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