Summit REIT Purchases Industrial Properties

Summit Real Estate Investment Trust, one of Canada’s largest publicly traded real estate investment trusts recently completed the acquisition of 110 light flex industrial properties.

A portion of the purchase price was paid utilizing the funds raised by the completion of a public offering of 10,500,00 units at a price of $14.40 per unit for total gross proceeds of $151.2 million on February 26, 2002. The co-lead underwriters were CIBC World Markets Inc. and BMO Nesbitt Burns Inc. and included RBC Dominion Securities Inc., Scotia Capital Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation and Trilon Securities Corporation.

The underwriters were represented by Graham Gow, Abraham Costin, Eric Angelini, Jacqueline Harper, Bram Green, John Currie, Gabrielle Richards, Jillian Welch, William Ford, Vito Ciraco and Oliver Jaakkola of McCarthy Tétrault LLP. In conjunction with the public offering, Summit was represented by Gary Kissack, Susan Guttman, Todd Thomson, Ivan Grbesic and Michael Winton of Goodman and Carr LLP.

In addition to the public offering, Summit also completed a debt financing of $131 million, with The Bank of Nova Scotia and Bank of Montreal on March 14, 2002. The Bank of Nova Scotia and Bank of Montreal were represented by Jeffrey Alpert, Ian Kady and Lisa Ford of Fogler, Rubinoff LLP. Summit was represented by Michael Winton and Stan Wax of Goodman and Carr.

Using the proceeds of the public offering and the debt financing, together with the assumption of certain existing mortgages, Summit (as part of the acquisition of the overall industrial portfolio of Aquest Real Estate Investment Trust by Summit and GWL Realty Advisors Inc., acting on behalf of the Great West Life Assurance Company), completed the purchase of 110 light flex industrial properties (together with certain additional vacant lands containing, in the aggregate, approximately 20 acres), from Aquest Real Estate Investment Trust for $351.4 million. GWL on behalf of Great West Life acquired 16 properties for $79.3 million. The purchase of its portion of the industrial portfolio by Summit was completed on March 14, 2002.
The legal team for Aquest was led in-house by Devon Jones, vice-president, legal, and included Barbara McGregor and Rod Davidge of Osler, Hoskin & Harcourt LLP. Paul Murphy, Q.C., of Patterson Palmer in Nova Scotia; Yves Dubois and Sébastien Berthelet of Borden Ladner Gervais LLP in Quebec; Richard Adams, B. Douglas Tait and Albina Moran of Thompson Dorfman Sweatman in Manitoba; Ronald Worsaba of Kanuka Thuringer in Saskatchewan; Jennifer Oakes of Field Atkinson Perraton in Alberta; and Stephen McCullough of Lawson Lundell in B.C., acted as local agents for Aquest. GWL was represented by Gord Sato and Jonathan Gitlin of McCarthy Tétrault. In respect of the acquisition from Aquest, Summit was represented by Michael Winton, Mark Mincer, Tony Kiru, John Hermann, Stan Wax, Leslie Giller, Laurence Geringer and Steve Watson of Goodman and Carr.