Summit Industrial Income REIT (Summit) will acquire two light industrial properties in Guelph, Ontario for $57-million.
The first property is a brand new single-tenant light industrial property and the second is a recently constructed multi-tenant light industrial property totalling 431,930 square feet in a newly-created industrial park with frontage on The Hanlon Expressway near Highway 40. Both properties are 100 per cent occupied.
According to the press release, Summit is also acquiring a 50 per cent interest in 49 acres of development land in the same industrial park for $13.8 million and entering into a 50/50 joint venture partnership with Cooper Construction Limited to fully develop the property adding an estimated 774,000 square feet of Class A light industrial space over the next few years. There are currently two buildings under construction in the park which, when completed, will total 386,929 square feet. Summit will acquire the remaining 50 per cent interest in these two buildings and own 100 per cent once completed and leased.
“We are very pleased to be expanding our presence in the Greater Toronto Area region with these well-located properties,” said Paul Dykeman, Summit’s chief executive officer in the REIT’s press release.
“At Summit we have significant and proven expertise in developing light industrial properties. These investments can generate much stronger capitalization rates and returns for our Unitholders in comparison to acquiring properties,” Dykeman continued.
Closing is anticipated on or before the end of September 2019.
