Dream Industrial REIT & Dream Unlimited Corp. Establish $1.5B GTA Dev. JV w Global Inst. Investor

TORONTO, April 28, 2022--(BUSINESS WIRE)--Dream Industrial Real Estate Investment Trust (TSX: DIR.UN) (the "Trust" or the "REIT") and Dream Unlimited Corp. (TSX: DRM) ("Dream") announced today the formation of a $1.5 billion develop-to-hold joint venture (the "Joint Venture") with a leading global sovereign wealth fund (the "Partner"). The Joint Venture will target to buy $500 million of well-located development sites in the Greater Toronto Area ("GTA") and other select markets within the Greater Golden Horseshoe Area ("GGHA"), to build high-quality, best-in-class industrial assets with the intention to hold the properties following stabilization. The Partner will commit to a 75% ownership interest in the Joint Venture with the Trust maintaining a 25% ownership interest. The Joint Venture intends to keep the development projects unlevered within the venture, with each party utilizing debt on their respective balance sheets to fund their respective share of the land acquisition and construction costs.

The Trust believes that this Joint Venture allows it to build up more scale in longer-term development sites as well as be competitive in acquiring near-term development sites. As a result, the Trust can participate in the upside of a larger number of development projects, improving the overall quality of its business and its development program while diversifying its development risk. Furthermore, the Joint Venture will significantly expand the Trust’s footprint in the GTA and GGHA over time.

A subsidiary of Dream Asset Management Corporation ("DAM") will be the asset manager for the Joint Venture and the Trust would continue to pay fees on its 25% interest under its current asset management agreement with DAM. The Trust is expected to provide property management and accounting, construction management, and leasing services to the Joint Venture at market rates, providing a growing income stream as the Joint Venture deploys its committed capital.