Summit Industrial Income REIT Issues $30M of Units and Enters Into $32M Bank Financing

Summit Industrial Income REIT (“Summit II”) issued approximately $30 million of units (the “Units”) on a private placement basis. The 66,666,667 Units were issued at a price of $0.45 per Unit.

Approximately $20 million of the private placement was brokered by BMO Capital Markets as sole lead agent. Immediately following the offering, Summit II closed a debt financing of up to $32 million, under which BMO Capital Markets acted as lead arranger and Bank of Montreal acted as administrative agent.

The proceeds from the private placement and a portion of the debt financing were used to purchase a portfolio of four industrial properties for $50.1 million. The remaining balance of the debt financing is available to Summit II for future acquisitions of commercial real estate investments, and for general operating purposes.

Both the offering and the debt financing were announced on September 7, 2012, and closed on September 27, 2012. These transactions followed Summit II's issuance of approximately $2.6 million of units on a private placement basis on September 25, 2012, and the installation of a new management team.

For the offering and the debt financing, Summit II was represented by McCarthy Tétrault LLP with a team consisting of Graham Gow, Andrew Parker and Heidi Gordon (business law); James Morand (tax); Gordon Baird and Laura Hage (financial services) and William McCullough and Patrick Kee (real property); and for the real estate acquisition, by Stephen Belgue and Daniel Shapira (real estate) at Goodmans LLP.

Steven Rukavina and Richard Arezes (real estate) of WeirFoulds LLP acted for the vendor on the real estate transaction.

For the offering, BMO Capital Markets was represented by Stikeman Elliott LLP with a team consisting of Dee Rajpal and Matthew Hunt (corporate); and for the debt financing by Davies Ward Phillips & Vineberg LLP with a team consisting of Derek Vesey and Jennifer Prieto (corporate / banking) and Donald Stanbury and David Reiner (commercial real estate).