Summit Industrial Income REIT Acquires Kitchener, Ontario Development Site

TORONTO, Feb. 7, 2022 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has acquired a 50% interest through a joint venture development partnership in a 19.5 acre development site located in the Grand River West Business Park in Kitchener, Ontario. Summit paid approximately $5.5 million for its 50% interest, funded with cash on hand. Summit expects to acquire the remaining 50% of the completed development project upon stabilization.

This image is a conceptual rendering and is shown for illustration purposes only. It is an interpretation of the design and not necessarily representative of the final building. (CNW Group/Summit Industrial Income REIT)

The development site is well-located in an established business park close to a regional airport, major highway and railway transportation links and a short drive to a planned new Go Rail service expansion station. The site, directly across from another Summit-owned property, can accommodate a single 360,000 square foot building with a proposed 40 foot ceiling height including three road access points, and a large area for truck and trailer parking, a distinct competitive advantage in the local market. Summit intends to have the building designated as LEED-Certified in keeping with its commitment to ongoing strong environmental performance and sustainability.

"We are pleased to continue to expand our pipeline of development projects in this region, building brand new, Class A industrial properties that  on stabilization will be added to our portfolio and provide attractive returns to Unitholders," commented Dayna Gibbs, Chief Operating Officer. "The Kitchener, Waterloo, Cambridge market, including Guelph where we own interests in other ongoing development projects, is currently Canada's tightest industrial market with only a 0.6% availability rate. The strong demand for industrial space in and around the Greater Toronto Area is driving increased rental rates and strong stable occupancies in this region, making it an attractive development market for the REIT."

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. More particularly and without limitation, this news release contains forward looking statements and information concerning the goal to build Summit's property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Summit can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed, and given the impact of the COVID-19 pandemic and government measures to contain it, there is inherently more uncertainty associated with the REIT's assumptions as compared to prior periods. These risks and uncertainties include, but are not limited to, tenant risks, current economic environment, environmental matters, general insured and uninsured risks and Summit being unable to obtain any required financing and approvals. 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

please contact: Dayna Gibbs, COO at [phone] ext. 220, [email protected]