Summit Industrial Income REIT agreed to buy a 37-property light industrial portfolio in Alberta for approximately C$588 million and is launching a roughly C$200 million subscription-receipt offering to fund the transaction.
The portfolio, which spans more than 3.3 million square feet, comprises 22 properties in Edmonton, 14 properties in Calgary and one property in Grand Prairie. The tenant base of the portfolio, which is approximately 91.7% occupied, consists mainly of transportation, warehouse and light manufacturing companies, with only 17% exposure to the oil and gas sector.
The Canadian industrial real estate investment trust is issuing 15,510,000 subscription receipts at C$12.90 apiece in a bought-deal offering, which comes with an overallotment option for the underwriters to purchase up to an additional 2,326,500 subscription receipts.
The REIT is also funding the portfolio acquisition with C$382 million in proceeds from a new bridge credit facility and from the recent sale of its data center properties.
The acquisition is expected to close on or about Nov. 1, while the offering is expected to close on or about Oct. 17.
BMO Capital Markets Real Estate Inc. is an exclusive adviser on the portfolio acquisition, while BMO Capital Markets is leading the syndicate of underwriters in the offering.
