Key Takeaways
- • CPP Investments, Dream Industrial REIT, and Dream Asset Management Corporation formed a Canadian industrial joint venture with $1.1 billion of allocated equity capital, targeting approximately $3.0 billion of acquisition capacity including leverage.
- • CPP Investments contributes $1.0 billion (90%) and Dream Industrial contributes $0.1 billion (10%) of the equity.
- • The joint venture agreed to acquire an Initial Portfolio of 12 industrial assets totaling 3.6 million square feet in Ontario, Quebec, and Alberta from Dream Industrial for $805 million.
- • A Dream subsidiary will serve as asset manager, while a Dream Industrial subsidiary will provide property management and leasing services.
- • Dream expects the partnership to take its assets under management above $30 billion, up from $28 billion as of September 30, 2025.
Summary
Canada Pension Plan Investment Board (CPP Investments), Dream Industrial Real Estate Investment Trust (TSX: DIR.UN), and Dream Asset Management Corporation announced the formation of a joint venture to acquire last-mile industrial properties in major Canadian markets. The partners have allocated $1.1 billion of equity capital, with $1.0 billion from CPP Investments and $0.1 billion from Dream Industrial. The structure is expected to allow approximately $3.0 billion of industrial asset acquisitions, including leverage, in Canada's major markets, with an emphasis on connectivity to population clusters and arterial transport routes.
The joint venture's first transaction is the acquisition of a 12-asset Initial Portfolio totaling 3.6 million square feet across Ontario, Quebec, and Alberta from Dream Industrial. The purchase price is $805 million. Under the arrangement, a subsidiary of Dream will act as asset manager for the joint venture, and a subsidiary of Dream Industrial will provide property management and leasing services.
Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments, said the Canadian industrial sector continues to show resilient demand and long-term growth drivers, and that partnering with Dream would allow CPP Investments to scale its Canadian exposure efficiently. Alex Sannikov, CEO of Dream Industrial REIT, said the venture is highly complementary to the trust's strategic direction and existing private capital partnerships. Michael Cooper, founder and Chief Responsible Officer of Dream, said the partnership reflects the strength of Dream's platform and expects it to lift Dream's assets under management above $30 billion from $28 billion as of September 30, 2025, while accelerating growth in its institutional asset management business.
TD Securities, RBC Capital Markets, Colliers Capital Markets, and CBRE advised the partners. Stikeman Elliott LLP and King & Spalding LLP provided legal counsel. The release contains forward-looking statements, and the Initial Portfolio acquisition could be modified, restructured, or terminated under its terms.
The joint venture's first transaction is the acquisition of a 12-asset Initial Portfolio totaling 3.6 million square feet across Ontario, Quebec, and Alberta from Dream Industrial. The purchase price is $805 million. Under the arrangement, a subsidiary of Dream will act as asset manager for the joint venture, and a subsidiary of Dream Industrial will provide property management and leasing services.
Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments, said the Canadian industrial sector continues to show resilient demand and long-term growth drivers, and that partnering with Dream would allow CPP Investments to scale its Canadian exposure efficiently. Alex Sannikov, CEO of Dream Industrial REIT, said the venture is highly complementary to the trust's strategic direction and existing private capital partnerships. Michael Cooper, founder and Chief Responsible Officer of Dream, said the partnership reflects the strength of Dream's platform and expects it to lift Dream's assets under management above $30 billion from $28 billion as of September 30, 2025, while accelerating growth in its institutional asset management business.
TD Securities, RBC Capital Markets, Colliers Capital Markets, and CBRE advised the partners. Stikeman Elliott LLP and King & Spalding LLP provided legal counsel. The release contains forward-looking statements, and the Initial Portfolio acquisition could be modified, restructured, or terminated under its terms.
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