.jpg)
1 hour ago
3
Article content
said Bruce Traversy, Chief Investment Officer of Dream Industrial REIT.
Article content
Accelerating Strategic Private Ventures in Europe
Article content
The REIT’s private ventures strategy allows it to scale the platform by participating alongside leading global institutional investors in various portfolio strategies including development, core+ and value-add investing. The returns from these ventures can be further enhanced where DIR is able to leverage its operating platforms and generate recurring revenue from property management and leasing services. The Trust’s private ventures are comprised of five vehicles in North America with a total asset value of over $9 billion as of March 31, 2026 that generate over $24 million of property management income on an annualized basis.
Article content
The Chancerygate transaction results in significant growth for DIR’s private ventures business in Europe. The REIT will gain immediate scale across several existing institutional joint ventures with a total gross asset value of £1.2 billion (C$2.2 billion).
Article content
The existing joint venture portfolio is comprised of 4.7 million square feet of existing MLI assets and 3.2 million square feet of assets in various stages of development. As part of the transaction, DIR will acquire Chancerygate’s minority stake in these joint ventures for consideration of approximately £23 million (C$43 million), representing an expected stabilized cap rate of over 7.5% upon completion of development projects and realization of built-in mark-to-market potential on existing assets. The existing joint ventures are largely fully deployed and are currently focusing on value-add initiatives such as lease-up of vacancy, marking rents to market and completion of development and intensification projects.
Article content
By value, 90% of the assets in the joint ventures are located in the U.K., resulting in significant scale in the market and creating opportunities for the REIT to establish a vertically integrated property management platform in the U.K. over time.
Article content
As part of the transaction, DIR, together with Dream and Chancerygate, has advanced negotiations with a leading global institutional investor to form a new programmatic JV. The new joint venture is expected to pursue acquisition and development opportunities in the MLI sector across Europe with a target gross asset value of approximately €500 million ($800 million). The REIT is expected to have a 5% stake in the new joint venture and provide property management and leasing services in the Netherlands and Germany, where it has an in-house platform.
Article content
Article content
Advisors
Article content
Kirkland & Ellis LLP is acting as U.K. legal counsel to Dream Industrial REIT. Deloitte is acting as tax advisor, CBRE and Colliers are acting as real estate advisors to the REIT.
Article content
About Dream Industrial Real Estate Investment Trust
Article content
Dream Industrial is an owner, manager, and operator of a global portfolio of well-located industrial properties. As at March 31, 2026, Dream Industrial has an interest in and manages a portfolio comprising 343 industrial assets totaling approximately 74.1 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S. Dream Industrial’s objective is to deliver strong total returns to its unitholders through secure distributions and growth in net asset value and cash flow per unit, underpinned by its high-quality portfolio and investment-grade balance sheet. Dream Industrial is an unincorporated, open-ended real estate investment trust. For more information, please visit www.dreamindustrialreit.ca.
Article content
Forward Looking Information
Article content
This press release contains forward-looking information within the meaning of applicable securities legislation including statements regarding the Chancerygate acquisition, including the terms and timing of closing thereof; expectations regarding the MLI portfolio including cost basis of the assets, costs and timing to complete, stabilization, and anticipated unlevered yield on cost on the projects; the Trust’s expectations and beliefs regarding the UK MLI sector, including that market fundamentals align with the REIT’s existing urban industrial strategy; the anticipated new programmatic pan-European MLI joint venture, including its completion and, if completed, the terms and quantum thereof; expectations regarding the Trust’s acquisition of Chancerygate’s private partnership interests, including expected returns and opportunities to expand the Trust’s property management and leasing platform in Europe and the U.K.; the expected accretion of the Chancerygate transaction to the Trust’s diluted FFO per unit upon stabilization of wholly owned development assets; anticipated returns of the Chancerygate transaction; the impact of the Chancerygate acquisition on the Trust’s ability to scale in Europe and drive new sources of revenue; the Trust’s expected stabilized cap rate upon completion of development projects in Chancerygate’s joint venture portfolio; the Trust’s belief that the Chancerygate transaction results in significant growth for its private ventures business in Europe; and the Trust’s anticipated funding sources and financing arrangements for the Chancerygate transaction. There can be no assurance that the proposed acquisition of Chancerygate will be completed or that it will be completed on the terms and conditions contemplated in this news release. The proposed acquisition of Chancerygate could be modified, restructured or terminated in accordance with its terms.
Article content
Article content
Forward looking information generally can be identified by the use of forward-looking terminology such as “objective”, “will”, “expect”, “intend”, “believe”, “should”, “plans”, “allow” or “continue”, or similar expressions suggesting future outcomes or events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those disclosed or implied. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; employment levels; mortgage and interest rates and regulations; inflation; risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates; risks that the Trust’s operations may be affected by adverse global market, economic and political conditions and other events beyond our control, including risks related to the imposition of duties, tariffs and other trade restrictions and their impacts; uncertainties around the timing and amount of future financings; geopolitical events, including disputes between nations, war and international
Article content
sanctions; the financial condition of tenants; leasing risks, including those associated with the ability to lease vacant space; rental rates and the strength of rental rate growth on future leasing; and interest and currency rate fluctuations. The Trust’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, including that future market and economic conditions will occur as expected and that geopolitical events, including disputes between nations or the imposition of duties, tariffs, quotas, embargoes or other trade restrictions (including any retaliation to such measures), will not disrupt global economies; inflation and interest rates will not materially increase beyond current market expectations; conditions within the real estate market remain consistent; competition for acquisitions remains consistent with the current climate; and the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions, risks, and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and MD&A, available at
Article content
Article content
.
Article content
Article content
Article content
Article content
View source version on businesswire.com:
Article content
Article content
Article content
Contacts
Article content
For further information, please contact: Dream Industrial REIT
Article content
Article content
Alexander Sannikov
Article content
Article content
President & Chief Executive Officer
Article content
Article content
(416) 365-4106
Article content
Article content
Article content
Lenis Quan
Article content
Article content
Chief Financial Officer
Article content
Article content
(416) 365-2353
Article content
Article content
Article content
Bruce Traversy
Article content
Article content
Chief Investment Officer
Article content
Article content
(416) 365-3531
Article content
Article content
Article content
English (US)