Summit Industrial Income REIT will purchase a new single-tenant light industrial property and a recently built multi-tenant light industrial property in an industrial park in Guelph, Ontario, for C$57.0 million in cash.
The acquisition of the properties covering 431,930 square feet of space will be financed by Summit's recently closed bought-deal equity offering. Closing is expected at or before September-end.
The company agreed to acquire a 50% stake in 49 acres of development land in the same industrial park for C$13.8 million.
It also entered into a 50/50 joint venture with real estate developer and construction company Cooper Construction Ltd. to build an estimated 774,000-square-foot class A light industrial building on the development land over the next few years.
Summit will buy the remaining 50% stake in two buildings totaling 386,929 square feet that are under construction in the industrial park and will own 100% once completed and leased.
The REIT has also been granted an option to purchase 100% of additional buildings to be developed under the joint venture.
