Mutual fund trust company, Summit, pays $47.3M for Vaughan warehousing facility

Building located at 123 Great Gulf Dr., near Hwy. 407 and railway transportation links

Yorkregion.com
Oct. 13, 2020
Dina Al-Shibeeb

Vaughan wins once again, thanks to its location close to highways and the airport.

Summit Industrial Income REIT ("Summit" or the "REIT"), an open-ended mutual fund real estate investment trust, is expected to close a deal on or before Oct. 13 after signing to lease a warehousing and logistics facility in Vaughan for 15 years and $47.3 million.

The facility is located at 123 Great Gulf Dr. in Vaughan, near Highway 407 and railway transportation links, according to a Summit news release in late September. The facility is also in proximity to other Summit properties.

Brampton-based Summit said it waived all closing conditions and will acquire 100 per cent of the 244,633-square-foot facility.

Built in 2003 and expanded in 2013, the Vaughan building is described as “modern and well maintained with clear ceiling heights ranging from 24 feet to 32 feet.”

“The transaction is structured as a sale-leaseback with the existing owner, a North American industry leader in wholesale efficiency and strategic merchandizing,” said the release. “The 15-year lease will include two per cent annual rent escalations.”

Summit’s CEO Paul Dykeman says the growth is continuing.

"We continue to successfully grow our presence in the GTA, Canada's strongest light industrial property market, with the announcement of the acquisition of this modern, highly leasable property in a prime location," Dykeman said.

Summit closed a transaction on Sept. 25 after it has sold a non-core 41,487-square-foot property located at 16295 132nd Ave. in Edmonton for net proceeds of $2 million.