Blackstone has expanded its European office and logistics portfolios with the acquisition of Dream Global REIT for C$6.2bn (€4.23bn).
Toronto Stock Exchange-listed Dream Global said it has agreed the all-cash deal to sell itself to real estate funds managed by Blackstone.
Dream Global unitholders will receive C$16.79 for each unit held, representing an 18.5% premium to the unit’s last closing price. The deal also represents 9.1% premium to Dream Global’s 30 June EPRA net asset value.
The real estate investment trust owns over 200 properties in key markets in Western Europe with a focus on Germany and the Netherlands.
Detlef Bierbaum, chairman of Dream Global’s board of trustees, said: “At a time when the Western European real estate market is becoming increasingly competitive, this transaction provides premium value to unitholders.
”Upon completion of the transaction, Dream Global will have increased its equity market capitalisation by nearly eight times and will have delivered total annualized returns of 15% to our unitholders, since inception, which exceed both the Canadian and European REIT benchmarks by approximately 60% and are competitive against the best managed real estate private equity funds and pension funds globally, over the same time period.”
Jane Gavan, president and CEO of Dream Global, said: “Today’s announcement can be attributed to Dream Global’s high-quality portfolio of properties located in key markets in Western Europe and the strength of our property management platform, as evidenced by our strong relationships with tenants, partners and lenders.
“By combining a disciplined approach to capital allocation with active asset management, we have established Dream as one of the most respected brands for investing in Western European office properties.”
James Seppala, head of Blackstone Real Estate Europe, said: “We are delighted to be acquiring Dream Global, a high-quality and diversified portfolio of office and logistics assets in Western Europe, which has been created by Dream over the last eight years.
“This Transaction is an exciting opportunity for Blackstone to expand its existing office and logistics portfolios in some of the largest and most important markets in the region.”