TORONTO, ONTARIO--(Marketwired - Jan. 7, 2015) -


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 5,130,000 units at a price of $5.85 per unit for total gross proceeds of approximately $30.0 million. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets and including CIBC World Markets Inc., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., Canaccord Genuity Corp. and Dundee Securities Ltd. (collectively, the "Underwriters").

The net proceeds of the Offering will be used to repay amounts outstanding on the REIT's revolving credit facility including amounts incurred in connection with the previously-announced acquisition on December 23, 2014 of a 220,000 square foot single-tenant property situated on 16.3 acres of land in Mississauga, Ontario (the "Mississauga Property") for a purchase price of approximately $22.93 million, equating to a price of approximately $98.18 per square foot and generating a going-in capitalization rate of approximately 6.5%. The Mississauga Property is leased to the Ford Motor Company of Canada under a seven-year lease. Prior to the closing of the acquisition of the Mississauga Property, approximately $3.7 million in upgrades were substantially completed, which upgrades were satisfied by the vendor and the tenant, and not the REIT. Approximately 5.2 acres of the Mississauga Property is excess land (the "Excess Land") on which a new 100,000 square foot building could be developed in the future. Part of the purchase price was satisfied through a $650,000 interest free vendor take back mortgage under which the vendor was provided with a two-year option with a one-year extension option to acquire the Excess Land that is to be severed from the property.

After applying the net proceeds of the Offering to repay the outstanding indebtedness under the revolving credit facility, the REIT intends to draw approximately $17.61 million from the revolving credit facility to fund a portion of the REIT's previously-announced purchase of a 50% interest in a portfolio of six light industrial properties in Montreal (the "Montreal Portfolio"). The REIT will acquire the 50% interest in the Montreal Portfolio, adding approximately 326,400 square feet to the REIT's portfolio, for approximately $39.4 million through a new joint venture with Montreal's Groupe Montoni, a developer and owner of commercial and industrial properties. The price to be paid for the Montreal Portfolio equates to approximately $121 per square foot. The REIT will assume approximately $22.8 million in existing mortgages on the properties being acquired with a weighted average remaining term of 4.8-years bearing an average interest rate of 3.47%, generating a going-in capitalization rate of approximately 6.63%. The Montreal Portfolio is 100% occupied with a weighted average remaining lease term of 13.1 years and contractual growth in rents that produce an average annual increase in rents of 2.1%. The acquisition of the Montreal Portfolio is expected to close on or before the end of January 2015.

About Summit

Summit 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

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 expected closing of the acquisition of the 50% interest in the Montreal 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. 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.

Contact Information:

Summit Industrial Income REIT
Paul Dykeman
(902) 405-8813