Canada's Summit Industrial Income REIT agreed to acquire a 187,245-square-foot cold storage facility in Mississauga, Ontario, from commercial and industrial property owner Orlando Corp. for C$37.0 million.
The property, which is leased to a national logistics company under a long-term lease with 14 years remaining, contains a building that can be expanded by roughly 35,000 square feet. It also has the potential for a new, free-standing estimated 90,000-square-foot building that can be developed on the approximate 5 acres of vacant land on the property.
The company expects to close the deal on or before June 18, at which time its wholly owned unit will issue 3,292,091 exchangeable units to Orlando Corp., together with related special voting units of Summit Industrial. At the holder's option, the exchangeable units will be exchangeable into Summit Industrial trust units on a 1-for-1 basis.
