Canada's Summit Industrial Income REIT agreed to acquire a 184,561-square-foot single-tenant light industrial property in Markham, Ontario, for about C$39.8 million in a sale-leaseback deal.

The property sits on an 11.7-acre site, allowing the potential development of a further 60,000 square feet.

The company plans to sign a short-term lease with the current owner, who is relocating to a new site. Once that happens, the real estate investment trust aims to expand the property and re-lease the bigger space.

The company will fund the deal using cash from its operating facility. The acquisition is expected to close Jan. 14, 2020.