TORONTO — A Singaporean sovereign wealth fund and Dream Industrial REIT have formed a joint venture to buy Summit Industrial Income REIT in a deal valued at $5.9 billion, including assumed debt.
Summit holds a portfolio of light industrial properties in markets across Canada.
Under the agreement, GIC and Dream Industrial REIT will pay $23.50 per unit in cash for the real estate trust. Summit units closed at $17.93 on the Toronto Stock Exchange on Friday.
GIC is the manager of Singapore’s foreign reserves, while Dream Industrial REIT owns, manages and operates a portfolio of 258 industrial assets in Canada, Europe and the U.S.
Dream Industrial REIT will hold a 10 per cent stake in the joint venture, while GIC will own the remaining 90 per cent.
The deal, which is expected to close in the first quarter of next year, is subject to customary conditions, including Summit unitholder, court, and regulatory approvals.
This report by The Canadian Press was first published Nov. 7, 2022.
Companies in this story: (TSX:SMU.UN, TSX:DIR.UN)
