GIC and Dream Industrial REIT (DIR) are to acquire Toronto-listed Summit Industrial Income REIT for C$5.9bn (€4.4bn).
The buyers have offered Summit unitholders C$23.50 per unit and will assume Summit’s debt of C$925m. The offer represents a premium of 31.1% to Summit’s closing unit price on 4 November 2022.
Under the 90:10 joint venture partnership between GIC and DIR, a subsidiary of Toronto-listed real estate manager and developer Dream Unlimited Corporation, will serve as the joint venture asset manager.
“We are pleased to bring GIC’s expertise in real estate investing together with Dream’s 25 years’ of experience as a world-class real estate developer, owner and asset manager,” said Lee Kok Sun, the chief investment officer of real estate, GIC.
“Summit has a premier portfolio of industrial properties defined by strong sector fundamentals, resilient cash flows, and stable market rent growth in key markets across Canada,” said Adam Gallistel, head of Americas real estate at GIC.
Michael Cooper, founder, of Dream Group of Companies, and trustee, of Dream Industrial REIT, said: “We have been impressed by Summit and their continued strong execution, and we are thrilled to welcome an exceptional team to Dream.”
“We are pleased to provide an immediate and certain premium value to our unitholders through this all-cash transaction with GIC and Dream,” said Paul Dykeman, chief executive officer and trustee of Summit.
The transaction, which is subject to approval, is expected to close in the first quarter of 2023.
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