In an announcement, Summit Industrial Income REIT said that it has completed the acquisition of fifteen light industrial properties in several locations, namely Greater Toronto, Moncton in New Brunswick and Edmonton in Alberta. The total cost of the acquisition is Can$171.4 million and measures 2.0 million square feet of gross lease area for the expansion of Summit's portfolio.
A total of Can$107.5 million of new financing has been arranged, with mortgage financing amounting to Can$90.5 million at Can$23.5 million for a five year term, assumed mortgage of Can$13.0 million for four year term remainder and Can$54.0 million with a seven year term. It also received a revolving credit line of Can$55.0 million from previous credit of Can$38.0 million to provide management with financial flexibility to undertake growth opportunities.
According to Paul Dykeman, Summit REIT CEO, ""With the completion of these key acquisitions, Summit II now has a platform with sufficient size and scale to generate stable and increasing long-term cash flows and on which we can grow significantly in the coming quarters. We were also pleased to have improved on the forecasted mortgage profile for the acquired properties, arranging longer-term funding at lower overall interest rates, improving our cost profile for the next few years."
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