/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Dec. 13, 2017 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has completed its previously-announced public offering (the "Offering") of 14,375,000 units at a price of $7.20 per unit for total gross proceeds of $103.5 million, which includes proceeds from the previously-announced, full exercise of an over-allotment option to purchase an additional 1,875,000 units. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets.

Summit intends to use the net proceeds from the Offering primarily to fund the purchase price for the acquisition of a 100% interest in a four property portfolio (the "Four Property Portfolio") for a purchase price of approximately $66.1 million, and the acquisition of a 100% interest in a ten-property portfolio (the "Ten Property Portfolio", and together with the Four Property Portfolio, the "Acquisition Portfolio") for a purchase price of approximately $72.0 million. Closing of the Acquisition Portfolio is expected on or before December 31, 2017.

The Four Property Portfolio is located in the Greater Toronto Area ("GTA") close to Pearson International Airport and major transportation routes. The Four Property Portfolio comprises 358,734 square feet of gross leasable area ("GLA") and is approximately 92.2% occupied by a roster of eight regional, national and global tenants with a substantial lease term to maturity of approximately 6.3 years. The purchase price for the Four Property Portfolio represents a discount to replacement cost and a going-in capitalization rate of approximately 5.9% with potential upside returns from leasing up the vacancy.

The Ten Property Portfolio is primarily located in the GTA, and is comprised of nine single tenant properties and one multi-tenant property. Eight properties comprising 553,556 square feet of GLA are located next to major transportation routes in the GTA. Two properties comprising 184,880 square feet of GLA are located in Ottawa and Montreal. The Ten Property Portfolio comprises 738,436 square feet of GLA and is 100% occupied, with a weighted average lease term of approximately 4.0 years with an average rental rate of $5.25 per square foot. The purchase price for the Ten Property Portfolio represents a going-in capitalization rate of approximately 5.4% and a discount to replacement cost.

About Summit
Summit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit our web site at www.summitIIreit.com.

Caution Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "goal" and similar expressions are intended to identify forward-looking information or statements. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, outlook and anticipated events or results. Some of the specific forward-looking statements contained herein include statements with respect to the following: the intention of the REIT to acquire the Acquisition Portfolio on the terms and conditions described herein; and the use of the proceeds of the Offering.

Forward-looking statements necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully as there can be no assurance actual results will be consistent with such forward-looking statements.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward looking information for anything other than its intended purpose. Summit undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Summit Industrial Income REIT

View original content: http://www.newswire.ca/en/releases/archive/December2017/13/c1614.html