Summit Industrial Income REIT (SMU. UN-T) is expanding its portfolio in the Toronto metropolitan area with the imminent acquisition of a single-tenant warehouse and a 342,830-square-foot logistics facility in Ajax, east of Toronto.
In the announcement, Summit stated that the $68 million is worth less than the replacement cost. It has waived the terms and will finance the acquisition of money from its recent delivery of $200 million un guaranteed bonds, which closed just before Christmas.
The value reflects an initial capitalization rate of around 4. 3%. Assets also include surplus land for long-term expansion or parking for the park. When considering, Summit states that the initial capitalization rate is 3. 9%.
The closure is scheduled for the end of January 2021.
“We are excited to get these quality assets with a perfect location in the Toronto metropolitan area and a strong and premium tenant,” Summit CEO Paul Dykeman said in the ad. “Looking ahead, with existing incomes below the market and the possibility of over-expanding land, we expect this cumulative acquisition to generate strong yields in the coming years. “
In response to RENX’s questions, a Summit spokesperson said he was not in a position to comment further before the end of the acquisition.
34-acre assets lately have only 23 according to cent policy and seven acres of surplus land.
It includes a 299,313-square-foot distribution warehouse and a 43,517-square-foot building.
The assets give a transparent warehouse ceiling height of 26 feet, shipping and reception doors, parking and vehicle storage. Summit says he’s been well maintained.
The assets are well on a corner near major roads and railways.
The tenant, a global giant automotive company, uses amenities such as the Canadian headquarters and the national portion distribution center. Recently, the tenant signed a five-year extension of their original 15-year lease with annual hiring increases through 2025.
Management believes existing rents are below the market.
The announcement closes a very active year of expansion for Summit.
In 2020, he acquired 10 homes in the Toronto metropolitan area with nearly one million square feet of area for $227. 6 million and acquired the remaining 50% stake in a portfolio of 11 quiet business houses in Montreal from his former joint venture spouse for $88 million; and the remaining 50% interest on two guelph homes of recent construction of his spouse for $33. 9 million.
The REIT sold a medium-sized building, a non-essential commercial asset in Edmonton and its percentage of the DC2 knowledge assignment in the GTA for approximately $29 million in total.
These adjustments also mean that Summit now manages one hundred percent of its portfolio internally.
Summit has appointed the Honourable A. Anne McLellan to its Board of Directors.
McLellan is a senior advisor at the law firm Bennett Jones LLP and recently served as rector of Dalhousie University. She is Canada’s former deputy prime minister and has held several cabinet positions. He is also an Officer of the Order of Canada.
Prior to joining politics, McLellan was a professor of law at the University of Alberta, where she was an associate dean and interim dean on several occasions.
Summit Industrial Income REIT owns and manages a portfolio of quiet commercial housing throughout Canada.
REIT in Brampton, Ontario has been operating lately homes in Ontario, Alberta, Quebec, British Columbia and New Brunswick, with part of its portfolio concentrated in Ontario.
As of September 30, 2020, the portfolio totaled 153 homes with a total of 18. 2 million square feet with a net e-book of approximately $2. 7 billion.
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Steve is an experienced writer, journalist, editor and communications specialist whose paintings have given the impression on a wide variety of print and online media. He is the author of the hot ebook . . .