Summit Industrial Income REIT (TSX:SMU.UN) entered into an agreement to acquire 725,000 square feet Two Class A logistics centres in Calgary, Alberta for approximately CAD 130 million on September 15, 2021. Summit is expected to pay CAD 126 million for the Logistics Centre, financed by the net proceeds from a CAD 110 million bought deal equity offering and cash on hand, generating an attractive stabilized capitalization rate of approximately 4.3%. As of filing on September 22, 2021, has completed public offering of CAD 126.7 million.

Summit Industrial Income Summit also has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets to sell, on a bought deal basis, 5,270,000 Units of Summit Industrial. In addition, Summit has granted the Underwriters an overallotment option to purchase up to an additional 790,500 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after closing of the Offering. Summit Industrial intends to use the net proceeds from the offering (and cash on hand) to fund the acquisition of the Logistics Centre with the balance, if any, to be used for general trust purposes.

The transaction is subject to certain closing conditions and is expected to close early in the fourth quarter 2021. The properties are highly accretive. Heidi Gordon, Andrew Parker, Gordon D. Baird and Patrick McCay of McCarthy Tétrault LLP acted as legal advisor to Summit Industrial Income.