CPP Investments forms joint venture with Dream Industrial REIT

The Canada Pension Plan Investment Board has signed a deal to form a joint venture with Dream Industrial Real Estate Investment Trust and Dream Asset Management Corp. focused on industrial properties in Canada. 

As part of the joint venture, the partners will acquire a portfolio of 12 Canadian industrial assets totalling 27 buildings from Dream Industrial for $805 million.

The firms say a subsidiary of Dream Asset Management will be the asset manager for the joint venture while 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, says the Canadian industrial sector continues to demonstrate resilient demand and meaningful long-term growth drivers, supported by a structurally high need for well-located space as supply chains and logistics continue to evolve.

CPP Investments has allocated $1 billion in equity capital to the partnership for a 90% stake in the joint venture.

Dream Industrial has contributed $100 million for a 10% stake.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.