Real estate funds managed by Blackstone to acquire Canada’s Dream Global REIT in an all-cash transaction.
Dream Global REIT and Dream Unlimited Corp. announced that Dream Global has entered into a master acquisition agreement with affiliates of real estate funds managed by Blackstone pursuant to which Blackstone will acquire all of Dream Global’s subsidiaries and assets in an all-cash transaction valued at C$6.2 billion ($4.69 billion).
On closing of the transaction, Dream Global unitholders will receive cash consideration of $16.79 per Dream Global unit.
“This Transaction is the culmination of the tremendous growth that Dream Global has achieved since its 2011 IPO. At a time when the Western European real estate market is becoming increasingly competitive, this transaction provides premium value to unitholders. Upon completion of the Transaction, Dream Global will have increased its equity market capitalization by nearly eight times and will have delivered total annualized returns of 15% to our unitholders, since inception, which exceed both the Canadian and European REIT benchmarks by approximately 60% and are competitive against the best managed real estate private equity funds and pension funds globally, over the same time period,” said Detlef Bierbaum, Chairman of Dream Global’s board of trustees.
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“Today’s announcement can be attributed to Dream Global’s high-quality portfolio of properties located in key markets in Western Europe and the strength of our property management platform, as evidenced by our strong relationships with tenants, partners and lenders,” said Jane Gavan, President and Chief Executive Officer of Dream Global.
“We are delighted to be acquiring Dream Global, a high-quality and diversified portfolio of office and logistics assets in Western Europe, which has been created by Dream over the last eight years. This transaction is an exciting opportunity for Blackstone to expand its existing office and logistics portfolios in some of the largest and most important markets in the region.” added James Seppala, Head of Blackstone Real Estate Europe.