Dream Industrial REIT, through its wholly owned subsidiary, Dream Industrial Europe Advisors Cooperative UA (Dream Industrial), has announced the acquisition of shares of a corporation that owns a portfolio of 31 institutional quality logistics properties from Clarion Partners Europe.
The portfolio, which has been amassed by Clarion over the past four years, totals over 827,000 square metres across six European markets. The value of the assets totals €882 million, representing a going-in capitalization rate in the low 4% range, including excess land.
By value, approximately 90% of the 31 properties is located in Germany, the Netherlands, France and Spain, with one property in each of Slovakia and the Czech Republic. The portfolio includes significant excess land totaling 95,000 square metres, providing longer term intensification opportunities.
The portfolio is 100% leased with a weighted average term of 5.3 years, has an average construction date in the mid-2000s, and an average clear height of 10.5 metres. The properties are leased to a range of high-quality tenants with strong/investment grade credit ratings, including multi-national corporations. Food distribution and third-party logistics tenants represent 50% of the portfolio by net rent.
“This acquisition is consistent with Dream Industrial’s strategy to add high-quality assets in strong European industrial markets, while improving portfolio quality, scale and diversification”, said Bruce Traversy, Head of Investments for Dream Industrial REIT. “The transaction provides a unique and transformational opportunity to accelerate Dream Industrial’s European expansion strategy, and enhances its institutional asset management, leasing and in-house development platform. Our long-standing relationships with the most highly regarded European institutions, including Clarion, were instrumental in allowing us to execute on this transaction, and we look forward to continuing to grow and upgrade our portfolio in Europe.”
Alistair Calvert, CEO of Clarion Partners Europe, added: “This transaction maintains our market leading track record of aggregating extremely high-quality assets, in structurally supported sectors, before realising signficant value on behalf of our investors through disposals to established counterparties. Our over 15 years of experience in the European industrial and logistics space allowed us to efficiently and methodically amass this portfolio asset by asset, in order to maximise returns. “This is a sector we retain a strong conviction in, which has only been strengthened as a result of the pandemic, and we continue to focus our efforts on leveraging both the support of institutional investors and our on the ground expertise across multiple geographies to grow assets under management.”