Summit Industrial Income REIT to Expand Presence in Target GTA and Montreal Markets

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Summit Industrial Income REIT to Expand Presence in Target GTA and Montreal Markets

MarketWatch

TORONTO, Oct. 31, 2017 (Canada NewsWire via COMTEX) — Summit Industrial Income REIT (“Summit” or the “REIT”) (SMU.UN) announced today that it has waived conditions and will acquire a 50% interest in a 70,000 square foot light industrial property well-located in Laval, Quebec. The REIT is purchasing the property with its Quebec joint venture partner Groupe Montoni. The REIT will pay $3.1 million for its 50% interest, financed by a new $2 million two-year mortgage bearing an expected interest rate of 3.3% with the balance in cash from its operating credit facility, generating a going-in capitalization rate of approximately 6.42%. Closing of the acquisition is expected on or before November 16, 2017.

The property is a well-maintained, modern Class A warehouse facility in a prime location close to major highways and other transportation links. The building is 100% occupied by a single tenant with 2.4 years remaining on a ten-year lease. There is an opportunity to expand the building in conjunction with the tenant renewing its lease.

The REIT also announced today that it has waived conditions and will acquire 100% of a 158,831 square foot industrial warehouse on a 7.8 acre site located in Pickering, Ontario. The REIT will pay approximately $14.3 million for the property, financed by its operating credit facility, generating a going-in capitalization rate of approximately 6.07%. Closing of the acquisition is expected on or before November 15, 2017. The property is a well-maintained and well-managed warehouse facility located in a prime location close to major highways and other transportation links. The building is 100% occupied by three tenants with a weighted average lease term of 6.3 years and…Read More

Lakeem Khodra
Lakeem Khodra
News Writer/Contributor at Tyranny News @lakeemk

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