Summit Industrial Income REIT agreed to acquire a newly built class A light industrial property encompassing 121,456 square feet in Calgary, Alberta, for C$15.9 million in cash.
The fully leased building is in the YYC Logistics Centre industrial park being developed near the Calgary International Airport on land leased from the Calgary Airport Authority. Fedex Ground, one of the two tenants at the property, occupies 75% of the building.
The real estate investment trust will fund the acquisition using proceeds from its recently closed bought-deal equity offering and expects to close the deal Dec. 2.
The developer of the property has a development agreement with the Calgary Airport Authority involving an additional 38.2 acres of airport land that can support a further 465,000 square feet of class A industrial inventory.
Summit CEO Paul Dykeman said the company is exploring the opportunity to take part in the future development of additional properties in the park.
