The purchase price for the Acquisition is anticipated to be approximately $850 million, to be paid in cash, and will be subject to customary closing adjustments.
The vendors include entities controlled by certain funds managed by Clarion Partners Europe. Including both the development and rent growth potential, the Trust expects the blended yield on the portfolio to be in the high 4% range.
A majority of the properties have strong income growth potential with in-place rents estimated to be on average 10% below market. The Trust estimates that the development potential on the excess land included in the portfolio is approximately 1.1 million square feet and could generate a yield on incremental development costs of over 7%. The total value of the real estate in connection with the Acquisition is expected to be approximately €880 million or $1.3 billion which implies a going in capitalization rate in the low 4% range, inclusive of excess land. The Acquisition would significantly enhance quality and scale in key industrial markets and establish a comprehensive pan-European real estate platform, including in-house development capabilities. TORONTO, (GLOBE NEWSWIRE) - Dream Industrial REIT (TSX: DIR.UN) (“Dream Industrial”, “DIR”, or the “Trust”) today announced that it is in exclusive and advanced discussions with regards to the acquisition of shares of a corporation that owns a portfolio of 31 institutional quality, logistics properties across Europe (the “Acquisition”). $250 million bought deal public offering of subscription receipts.Would expand the Trust's institutional asset management, leasing and in-house development platform.Would transform the Trust into a $5 billion global industrial REIT with significantly enhanced scale in key European real estate markets.Real estate is valued at approximately €880 million ($1.3 billion 1) which implies an expected going in capitalization rate in the low 4% range, including excess land with approximately 1.1 million square feet of development potential and strong near-term organic income growth potential.Exclusive and advanced discussions on a portfolio of 31 institutional quality, logistics properties in strong European industrial markets.NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. This press release constitutes a “designated news release” for the purposes of Dream Industrial REIT’s prospectus supplement dated Februto its short form base shelf prospectus dated October 11, 2019
0 kommentar(er)
