With an equity financing, and a debenture financing and now starting to deploy the funds; I do like this management team, and their frank quarterly conference calls.
2020-09-28 17:35 ET - News Release
Mr. Paul Dykeman reports
SUMMIT INDUSTRIAL INCOME REIT CONTINUES TO EXPAND PRESENCE IN STRONG GTA MARKET
Summit Industrial Income REIT has waived all closing conditions and will acquire 100 per cent of a 244,633-square-foot Class A single-tenant warehousing and logistics facility in Vaughan, Ont., a prime new industrial property node in the Greater Toronto Area (GTA). Summit will pay $47.3 million for the property, well below replacement cost, financed by cash from the REIT's unsecured revolving credit facility and generating a going-in capitalization rate of approximately 4.5%. Closing is anticipated on or before October 13, 2020.
The property, located at 123 Great Gulf Drive in Vaughan, is well situated near major highway and railway transportation links and is in close proximity to other Summit properties. Built in 2003 and expanded in 2013, the building is modern and well maintained with clear ceiling heights ranging from 24 feet to 32 feet. The transaction is structured as a sale-leaseback with the existing owner, a North American industry leader in wholesale efficiency and strategic merchandising. The fifteen-year lease will include 2% annual rent escalations.
"We continue to successfully grow our presence in the GTA, Canada's strongest light industrial property market, with the announcement of the acquisition of this modern, highly leasable property in a prime location," commented Paul Dykeman, Chief Executive Officer.
The REIT also announced today that it has sold a non-core 41,487 square foot property located at 16295 132nd Avenue in Edmonton, Alberta for net proceeds of $2.0 million. The transaction closed on September 25, 2020.