Canada Pension Plan Investment Board (CPP Investments) has committed C$1bn (€680m) alongside Dream Industrial Real Estate Investment Trust to launch a C$1.1bn equity partnership to target Canadian industrial assets.
Dream Industrial REIT is contributing C$100m for a 10% stake in the joint venture, which is expected to reach C$3bn in investment capacity through leverage.
The partnership, which also includes Dream Asset Management, has already acquired an initial 3.6m sqft portfolio of 12 assets for C$805m from Dream Industrial REIT.
A subsidiary of Dream Asset Management will be the asset manager for the joint venture, and a subsidiary of Dream Industrial REIT will provide property management and leasing services.
Sophie van Oosterom, managing director, head of real estate at CPP Investments, said: “The Canadian industrial sector continues to demonstrate resilient demand and meaningful long-term growth drivers, supported by a structurally high need for well-located space as supply chains and logistics continue to evolve.
“By partnering with Dream, a leading institutional asset manager and operating platform, we can efficiently scale our exposure in the Canadian market to capture this growth and drive long-term value for the benefit of CPP contributors and beneficiaries.”
Alex Sannikov, CEO of Dream Industrial REIT, said: “We are excited to partner with CPP Investments to continue to expand our presence in the Canadian industrial market.
“This new joint venture is highly complementary to the strategic direction of Dream Industrial and our existing private capital partnerships. We look forward to growing this partnership with CPP Investments.”
Michael Cooper, founder and chief responsible officer of Dream Asset Management, said: “This new venture with one of the largest and most respected institutional investors globally is a testament to the strength of our platform, our reputation in the sector, and our asset and property management capabilities.
“With this partnership, we expect to surpass $30bn of assets under management and increase our growth rate as we continue to build out our institutional asset management business.”
To read the latest IPE Real Assets magazine click here.
