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Summit II REIT Announces Filing Of A Preliminary Short Form Prospectus And Property Acquisitions

/NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Jan. 30, 2013 /CNW/ - Summit Industrial Income REIT (" Summit II") (TSXV: SMU.UN) today announced that it has filed a preliminary short form prospectus with the securities authorities in all provinces and territories of Canada with respect to a proposed offering of its units.

The offering is being made on an underwritten basis through a syndicate of underwriters led by BMO Capital Markets and includes CIBC World Markets Inc., RBC Dominion Securities Inc.,  National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc. and Canaccord Genuity Corp.

Summit II has entered into agreements in connection with five potential acquisitions (the '' Acquisitions'') of industrial properties (the " Acquisition Properties"). Three of the Acquisitions are in the Greater Toronto Area (the '' GTA''), one is in Moncton, New Brunswick, and one is in Edmonton, Alberta. One of the Acquisitions in the GTA is for a portfolio of eight properties in Brampton (the " Brampton Portfolio"). The Acquisitions will be completed pursuant to various purchase and sale agreements between a subsidiary of Summit II and the vendors of the various properties. None of the Acquisitions are conditional on any of the other Acquisitions except that the acquisition of the properties that make up the Brampton Portfolio are conditional upon the acquisition of all, but not less than all, of the properties that make up the Brampton Portfolio. The aggregate purchase price (including closing costs) for the Acquisitions is anticipated to be approximately $177 million. The net proceeds from the offering of units are expected to be used by Summit II, along with cash on hand, an assumed mortgage, certain committed mortgages, certain pending mortgages and a bridge facility from an affiliate of BMO Capital Markets (if and to the extent required), to fund the purchase of the Acquisition Properties. Certain of the Acquisitions may close prior to the closing of the offering of units or shortly thereafter and may be funded initially without using proceeds from the offering such that the proceeds of the offering will be used to pay down indebtedness of Summit II. In the event that Summit II is unable to complete all of the Acquisitions, Summit II may, in its discretion, elect to acquire less than all of the Acquisition Properties. For more information on the Acquisition Properties, please see the preliminary short form prospectus. Copies of the preliminary short form prospectus relating to this offering of units will be available from the underwriters or, under Summit II's profile on SEDAR ( www.sedar.com).

As previously announced, Summit II has completed a number of successful transactions in recent months including the acquisition of 501 Palladium Drive, 200 Iber Road, 240 Laurier Boulevard, 710 Neal Drive and 134 Bethridge Road. The first four properties were acquired for $50.1 million, at a capitalization rate of 7.9% and these properties were appraised as part of the preparation of year-end financial statements at $59.3 million, indicating an increase of approximately 18%. As a result, today Summit II is announcing that the value of its assets has grown from $12 million in September 2012 to approximately $82 million as at December 31, 2012 as a result of the transactions and the increased appraised value of those properties.

The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the " U.S. Securities Act"), or any U.S. State securities laws and may not be offered or sold, directly or indirectly, within the United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person.

The offering of units is expected to close by the end of February or early March 2013 and is subject to usual conditions.

About Summit II Summit Industrial Income REIT is an open -ended mutual fund trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit II's units are listed on the TSX Venture Exchange and trade under the symbol SMU.UN.

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 proposed offering of units, the completion of the Acquisitions and the proposed closing of the offering. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit II, including identifying qualified candidates. Although Summit II 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 II 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. These risks and uncertainties include, but are not limited to, market conditions, tenant risks, current economic environment, environmental matters, general insured and uninsured risks and Summit II 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 II undertake 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Summit Industrial Income REIT

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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