Toronto-based Dream Industrial REIT has confirmed the acquisition of a pan-European portfolio of 31 logistics properties from Clarion Partners Europe in a share deal worth €882 mln.
Dream Industrial said a month ago that it was in advanced talks to buy the portfolio, which totals over 827,000 m2 across six European markets. The vendor was not disclosed, but was believed at the time to be Clarion Partners Europe.
By value, around 90% of the 31 properties is located in Germany, the Netherlands, France and Spain, with one property in each of Slovakia and the Czech Republic. The portfolio includes significant excess land totalling 95,000 m2.
The portfolio, which has been amassed by Clarion over the past four years, is 100% leased with a weighted average term of 5.3 years. The properties are leased to a range of occupiers, with food distribution and third-party logistics tenants representing 50% of the portfolio by net rent.
‘This acquisition is consistent with Dream Industrial’s strategy to add high-quality assets in strong European industrial markets, while improving portfolio quality, scale and diversification,’ said Bruce Traversy, head of investments for Dream Industrial REIT.
‘The transaction provides a unique and transformational opportunity to accelerate Dream Industrial’s European expansion strategy, and enhances its institutional asset management, leasing and in-house development platform. Our long-standing relationships with the most highly regarded European institutions, including Clarion, were instrumental in allowing us to execute on this transaction, and we look forward to continuing to grow and upgrade our portfolio in Europe.’
Since expanding into Europe in January 2020, Dream Industrial REIT has acquired over €1.2 bn of logistics properties across major European markets. Following the transaction, Dream Industrial’s gross asset value increases to over €3.3 bn and Europe will account for around 37% of total assets, up from approximately 14% as at March 31, 2021.
Alistair Calvert, CEO of Clarion Partners Europe, added: ‘This transaction maintains our market leading track record of aggregating extremely high-quality assets, in structurally supported sectors, before realising signficant value on behalf of our investors through disposals to established counterparties. Our over 15 years of experience in the European industrial and logistics space allowed us to efficiently and methodically amass this portfolio asset by asset, in order to maximise returns.
‘This is a sector we retain a strong conviction in, which has only been strengthened as a result of the pandemic, and we continue to focus our efforts on leveraging both the support of institutional investors and our on the ground expertise across multiple geographies to grow assets under management.’
Clarion Partners Europe was advised on the transaction by JLL, CBRE, and Goodwin Procter. Arcadis provided vendor technical due diligence, and Le Breton Notaires formed part of the French legal team.
Dream Industrial was advised by TD Securities, Greenberg Traurig and Osler, Hoskin & Harcourt. PwC provided tax due diligence advice, and Duff&Phelps REAG and bbn adviseurs acted as technical advisors.