Summit Industrial Income REIT Expands Presence in Strong Greater Toronto Area
T.SMU.R | 4 days ago
Canada NewsWire
TORONTO, Oct. 31, 2019
TORONTO, Oct. 31, 2019 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it had waived conditions and will acquire 100% of a Class A light industrial property totaling 128,235 square feet located in Vaughan, Ontario in the Greater Toronto Area. Summit will pay $25.5 million for the property, well below replacement cost, funded by the assumption of a $10.6 million mortgage with a 3.88% interest rate maturing in March 2023 and cash from its recently completed bought-deal equity offering. Closing is anticipated on or before the end of November 2019.
The building was constructed in 2003 and includes 28-foot clear ceiling heights. It sits on eight acres of land with a site coverage of only 37%, thus permitting outside storage and ample parking. The property is occupied by a single light industrial tenant in the last four years of a 10-year lease. Management believes the rent being paid is well-below market and anticipates a significant increase when the lease expires, and rents are brought more in line with the GTA market.
"We continue to expand our presence in the strong Greater Toronto Area, our main target market, through accretive property purchases and our value enhancing development programs," commented Paul Dykeman, Chief Executive Officer.