Canada’s Dream Industrial REIT has made a significant acquisition in core logistics markets across America’s Midwest.
The portfolio of 21 buildings located in 5 cities adds scale to the REIT’s holdings with around 3.5 million square feet of gross leasable area in Chicago, Cincinnati, Columbus, Indianapolis, and Louisville.
It includes an attractive mix of single-tenant assets and multi-tenant facilities that service a broad range of tenant uses and sizes from small bay to large distribution facilities.
“Consistent with our communicated strategy, the Acquisition adds highly functional assets in key industrial markets that offer attractive yields with strong growth potential, while improving the overall quality of the Trust’s portfolio,” said Brian Pauls, Chief Executive Officer of Dream Industrial REIT. “Less than two years after announcing our U.S. expansion, we have successfully acquired 7 million square feet of GLA and the U.S. now represents our initial target of approximately 20% of our gross asset value. Looking forward, we will continue to add portfolio scale with a primary focus on our target Canadian markets, including Ontario and Quebec.”
The REIT has also entered into an agreement to sell, on a bought deal basis, 12,000,000 units of the Trust (“Units”) at a price of $10.45 per Unit to a syndicate of underwriters led by TD Securities Inc. (the “Underwriters”) for total gross proceeds of $125 million (the “Offering”).
The C$235 million acquisition is expected to close by the end of the 1st quarter of 2019.
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