Summit Industrial Income REIT (Summit) is going to acquire a light industrial portfolio that comprises 37 properties in Alberta for approximately $588 million.
Totalling over 3.3 million square feet, 22 of the properties (1.8 million square feet) are in Edmonton, 14 properties (1.4 million square feet) are in Calgary, and one property is in Grand Prairie. The purchase also includes one parcel of land (which is leased) in Edmonton.
“This important acquisition significantly increases the size and scale of our total portfolio to 145 properties aggregating 16.9 million square feet with an asset value of approximately $2.5 billion,” commented Paul Dykeman, chief executive officer in the REIT’s press release.
“We are also pleased to have quickly and accretively recycled the funds generated from the sale of our non-core data centre properties into our core light industrial business where we have a proven track record of creating value for our Unitholders.”
According to the press release, the portfolio contains a mix of single-tenant and multi-tenant properties. Approximately 67 per cent of the portfolio consists of modern Class A space.
BMO Capital Markets Real Estate Inc. is acting as an exclusive advisor on the transaction expected to close on or about November 1, 2019.