Dream Industrial, GIC to buy Summit for $5.9 billion

On November 7, 2022, Dream Industrial Real Estate Investment Trust (Dream Industrial REIT) and GIC, a global sovereign wealth fund, finalized an agreement to acquire Summit Industrial Income REIT in a C$5.9 billion all-cash deal. This transaction, involving the creation of the Canadian Industrial JV, where Dream Industrial holds a 10% stake and GIC 90%, is significant for Dream Industrial's expansion in the Canadian industrial market. This strategic move will more than double Dream Industrial's Canadian industrial portfolio, with a total Gross Leasable Area (GLA) of 43 million square feet, enhancing its presence in high-growth areas like Toronto and Montreal.

This acquisition is part of a broader programmatic joint venture arrangement between GIC and Dream Industrial, focusing on major industrial markets in Canada. Financially, Dream Industrial plans to fund its equity share through various debt instruments, including a C$200 million loan from The Toronto-Dominion Bank and an upsized USD term loan.

The transaction received unanimous approval from Dream Industrial's Special Committee and Board of Trustees. TD Securities served as the financial advisor, with Osler, Hoskin & Harcourt LLP and Stikeman Elliott LLP providing legal counsel to Dream Industrial and GIC, respectively. Other advisors included Scotiabank, Goodmans LLP, CBRE, Skadden, Arps, Slate, Meagher & Flom LLP, and King & Spalding LLP.

Deal Type

Merger & Acquisition

Industry

Other

Transaction

$ 5,900,000,000

Deal Status

Closed

Closing Date

17 February 2023