Dream Industrial Real Estate Investment Trust (Trust) has formed a C$1.5 billion ($1.2 billion) develop-to-hold joint venture with a leading global sovereign wealth fund.
The joint venture will target to buy C$500 million ($391 million) of well-located development sites in the Greater Toronto Area (GTA) and other select markets within the Greater Golden Horseshoe Area (GGHA), to build high-quality, best-in-class industrial assets with the intention to hold the properties after stabilization.
The partner will commit to a 75 percent ownership interest in the joint venture, with the Trust maintaining a 25 percent ownership interest. The joint venture intends to keep the development projects unlevered within the venture, with each party utilizing debt on their respective balance sheets to fund their respective share of the land acquisition and construction costs.
Trust believes that the joint venture allows it to build up more scale in longer-term development sites