Singapore's GIC, partner to buy Canadian REIT Summit for $3.3 bln (updated)

Dream Industrial REIT

07/11/2022 08:10

(Adds details from Dream Industrial's statement, Summit's
statement, background)
       Nov 7 (Reuters) - Singapore's sovereign wealth fund GIC
and Canada's Dream Industrial REIT  DIR_u.TO  will buy Canada's
Summit Industrial Income REIT  SMU_u.TO  for about C$4.46
billion ($3.30 billion), excluding debt, the companies said in
separate statements on Monday.
    GIC and Dream Industrial REIT (DIR) will form a joint
venture for the deal, with GIC owning 90% and DIR owning the
rest, according to the statements.
    The deal builds on GIC's recent real estate purchases
globally and gives it access to the Canadian industrial space.
    In September, GIC, along with another private equity firm,
bought U.S. commercial REIT Store Capital Corp  STOR.N  for
about $14 billion.
    Summit's unitholders will get C$23.50 per unit in cash,
representing a 31.1% premium to their close on Friday, Summit
said in a separate statement.
    The deal is valued at C$4.46 billion, according to Reuters'
calculations based on Summit's 189.85 million outstanding units
as of June 30. Including debt, the deal is valued at C$5.9
billion, Summit said.
    DIR said the deal would more than double the scale of its
Canadian industrial portfolio under management, while the JV
with GIC would give it a new source of capital to pursue
acquisitions in Canada without relying on capital markets.
    On June 30, Summit's portfolio totaled 160 properties
aggregating 21.6 million square feet, with an additional 13
buildings under development aggregating 2.3 million square feet
of potential gross leasable area, for a total net book value of
approximately $5.0 billion.
 
 ($1 = C$1.3534)
 (Reporting by Shubham Kalia and Anirudh Saligrama in Bengaluru;
Editing by Savio D'Souza)
 ((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on
Twitter;))