TORONTO, March 28, 2017 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today it has waived conditions and will be acquiring 100% of a 138,418 square foot Class A light industrial property located in Sherbrooke, Quebec. The building is a brand new, design-build property completed in 2017 with clear 28 foot ceiling heights located on major transportation links only 30 minutes from the United States border. The property will be acquired for $14.8 million in cash from the REIT's credit line, generating a strong going-in capitalization rate of 6.5%. The building is 100% leased for a ten-year term to a single tenant with a strong AAA credit rating. The property has the potential for future expansion based on tenant demand. Closing is expected on or before April 15, 2017.
"With its close proximity to major Northeastern markets in the United States, Sherbrooke has become a major distribution hub for businesses exporting to the U.S.," commented Paul Dykeman, Chief Executive Officer. "Our credit worthy tenant has been operating in the region for decades, and we look forward to assisting in their growth by expanding the building in the future."
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.
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SOURCE Summit Industrial Income REIT
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