A giant Alberta industrial portfolio that includes 37 light industrial properties totalling more than 3.3 million square feet is in the acquisition crosshairs of Ontario-based Summit Industrial Income Real Estate Investment Trust.
Of the total, 22 properties (1.8 million square feet) are in Edmonton, 14 (1.4 million square feet) in Calgary, and one in Grande Prairie, according to a Summit release.
An agreement to purchase, announced October 7, also includes one parcel of land in Edmonton, which is currently under lease.
The portfolio seller has not been identified.
Summit said it would pay approximately $588 million for the portfolio, generating a year one capitalization rate of approximately 5.5 per cent.
“This important acquisition significantly increases the size and scale of our total portfolio to 145 properties aggregating 16.9 million square feet with an asset value of approximately $2.5 billion,” said Paul Dykeman, chief executive officer of Summit, in a press release.
The portfolio’s occupancy currently stands at approximately 91.7 per cent. The tenant base consists primarily of transportation, warehouse and light manufacturing firms, with only a 17 per cent exposure to the oil and gas industry. Site coverage is about 22 per cent of total land being acquired, providing the opportunity for development, redevelopment and tenant expansions over time, Dykeman explained.