Summit Industrial Income REIT closes $103.5M offering

News Release

Summit Industrial Income REIT Announces Completion of $103.5 Million Equity Offering

Toronto, Ont. – December 13, 2017: 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 14,375,000 units at a price of $7.20 per unit for total gross proceeds of $103.5 million, which includes proceeds from the previously-announced, full exercise of an over-allotment option to purchase an additional 1,875,000 units. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets.

Summit intends to use the net proceeds from the Offering primarily to fund the purchase price for the acquisition of a 100% interest in a four property portfolio (the “Four Property Portfolio”) for a purchase price of approximately $66.1 million, and the acquisition of a 100% interest in a ten-property portfolio (the “Ten Property Portfolio”, and together with the Four Property Portfolio, the “Acquisition Portfolio”) for a purchase price of approximately $72.0 million. Closing of the Acquisition Portfolio is expected on or before December 31, 2017.

The Four Property Portfolio is located in the Greater Toronto Area (“GTA”) close to Pearson International Airport and major transportation routes. The Four Property Portfolio comprises 358,734 square feet of gross leasable area (“GLA”) and is approximately 92.2% occupied by a roster of eight regional, national and global tenants with a substantial lease term to maturity of approximately 6.3 years. The purchase price for the Four Property Portfolio represents a discount to replacement cost and a going-in capitalization rate of approximately 5.9% with potential upside returns from leasing up the vacancy.

The Ten Property Portfolio is primarily located in the GTA, and is comprised of nine single tenant properties and one multi-tenant property. Eight properties comprising 553,556 square feet of GLA are located next to major transportation routes in the GTA. Two properties comprising 184,880 square feet of GLA are located in Ottawa and Montreal. The Ten Property Portfolio comprises 738,436 square feet of GLA and is 100% occupied, with a weighted average lease term of approximately 4.0 years with an average rental rate of $5.25 per square foot. The purchase price for the Ten Property Portfolio represents a going-in capitalization rate of approximately 5.4% and a discount to replacement cost.

About Summit

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

For More Information, please contact:
Paul Dykeman, CEO at (902) 405-8813