Dream Industrial confirms talks to buy €880m European portfolio

Toronto-based Dream Industrial REIT has confirmed it is in advanced negotiations to acquire a portfolio of 31 institutional quality, logistics properties across Europe in a share deal valued at €880 mln.

Although the company did not disclose the vendor, it is believed to be Clarion Partners Europe, which in January launched the sale of a 31-property portfolio spread across six countries.

Concentrated in the Netherlands, Germany, France, and Spain, they have been assembled by the company for its third fund since the end of 2017.

The portfolio totals around 830,000 m2 of assets predominantly let to large 3PLs, grocery retailers, and e-commerce operations. It is 100% occupied with a 5.3 year weighted average lease term.

The portfolio also includes land for development in excess of 1 million sq ft.

Dream Industrial REIT entered Europe last year and has since built a €330 mln portfolio in Germany and the Netherlands.

‘The Trust believes this portfolio provides a unique and transformational opportunity to accelerate its European expansion strategy, which enhances its institutional asset management, leasing and in-house development platform,’ it said in a statement. The REIT will finance the acquisition with $150 mln of cash and $350 mln of debt.

The deal is expected to close in the next two months.


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